Discount to peersBoth KEG and BPF have recovered back to their June highs. Of course, both are paying a partial dividend while SIR is not. If SIR were to join the pack to it's June high it would be trading at $5.20 now, so currently a substantial 45% discount.
Being the smallest competitor with the shallowest of pockets, SIR is a laggard and underdog here. But, the vax rollout has started and by September the majority of the population will be vaccinated and shutdowns will be one for the record books.
Late Spring into summer should see a big rebound in the hospitality business as people get to expand their circles and meet face to face once again. And, where best to catch up but over a cold beer, glass of wine and great food at your favourite dining establishment.
One can wait for that dividend to come back and pay higher for it, or take a calculated risk now and reap substantial capital gain rewards on top. If SIR were to go bust, it would have done so already. The door to the other side of this pandemic just opened and the chance for insolvency moved another notch down to practically nil.
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