SIA, good company in a difficult industry

I just saw the analyst report on SIA result for FY08. The key points are

Operating profit up 62%
Net profit grew 40%
Turnover up 10%
Dividend of $1

I am not a fan of SIA or the aviation industry. That's because aviation industry has traditionally being a very difficult industry to earn money. Invest your money in the sector would prove to be a tough call, because you don't know when the tide could turn against you.

Purely from the result point of view, it reminds us something. A good company in a difficult industry would still perform and deliver shareholder value. So, the moral of the story? The management capability is up most important in stock picking. You pick a good company with great management, you would be taken care of in the long run.

Hold on, but how do we pick the company with great management? That's the million dollar question! Maybe try to flip the Philip Fisher book to see the clue. I would say it is through long term observation, we can gage what is the management capability.

How they make decision?
How they treat the minority shareholder?
How they present themselves in report, analyst meeting?

Of course, ultimately, they should deliver.