Tag Archiv: 上海后花园GFC

Saga’s share price is down 70% in 2020. Is now the time to buy?

first_imgSaga’s share price is down 70% in 2020. Is now the time to buy? Edward Sheldon, CFA | Wednesday, 22nd July, 2020 | More on: SAGA Simply click below to discover how you can take advantage of this. Image source: Getty Images The last time I covered Saga (LSE: SAGA) shares was in November 2019. At the time, I said that there were signs that the company was turning things around. However, I also said that there was a long way to go and that there were much better stocks for investors to buy.Since that article, Saga’s share price has fallen from 59p to just 17p. That represents a decline of about 70%. Are Saga shares worth buying at today’s rock-bottom prices? Let’s take another look at the investment case.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Saga’s share price has tanked due to Covid-19It’s not hard to see why Saga’s share price has tanked in 2020. As a result of Covid-19 lockdowns, the travel side of the business (which generates around 50% of revenues) has been decimated. Since mid-March, all of its cruise ship operations have been suspended. Recently, the company advised that as of 31 May, it had cancelled all travel departures up to and including August.This setback is clearly going to hit near-term revenues and earnings quite badly. The magnitude of the impact is impossible to determine at the moment. However, Saga said in April that it expects revenue for the full year to be lower by around 65% for tour operations and cruise if the cruise business is suspended for six months.Can Saga rebound?Could the company turn things around now that lockdowns are easing? That’s hard to say due to the uncertainty associated with Covid-19.In a trading update on 22 June, Saga said that it continues to expect “some travel to resume this year”. However, it added that it has considered various scenarios for the travel side of the business including one in which travel is not resumed until 2021.My concern is in relation to future booking numbers. Saga recently said that it has retained over 70% of advance receipts on cancelled cruise departures. It also said new bookings for next year have been “very positive”. I am a little sceptical about near-term booking numbers, though. Given that Saga caters to the elderly segment of the population – who are more vulnerable to Covid-19 – my belief is that cruise ship passenger numbers won’t return to pre-Covid-19 levels for quite a while. This adds uncertainty to the investment case for Saga shares.Saga’s dividend has been suspendedThere are other issues that add uncertainty as well.One is the group’s debt position. At 31 January, net debt totalled £594m. This could potentially present problems if operating conditions don’t improve soon.Another is Saga’s dividend. In the past, Saga shares had appeal from an income perspective as the dividend yield was attractive. However, the dividend has now been suspended due to the challenges the company is facing. We don’t know when it will be reinstated.Are Saga shares a good buy?Weighing everything up, I think the best move for investors is to avoid Saga shares at the moment.Given the uncertainty associated with Covid-19, the shares are too risky to buy right now, in my view.All things considered, I think there are much safer stocks to buy. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. See all posts by Edward Sheldon, CFA Our 6 ‘Best Buys Now’ Sharescenter_img Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. 5 Stocks For Trying To Build Wealth After 50 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your free copy of this special investing report now! Enter Your Email Addresslast_img read more