PaulRen's blog

PaulRen's picture

2 solid choices during dire times

Thai stocks in general have been shattered this year.

Yet, perusing Thai broker reports you would not know:

1) There is a highly successful/profitable listed company here which actually benefits earnings wise, from the tame Thai economy -and even more so from the unsustainable Thai consumer debt..., while paying 5% dividends (or 8 times more then local Thai bank deposit rates).

2) As well as a prominent exporter to nearly all over the world in a defensive industry, so reaping higher profit margins and paying record high dividends due to soaring profits this year and likely next. A big beneficiary of demographics. Yet never pointed out here. But I have and do, with lots of experienced analysis on location.  See my recent postings here on why and which 2 companies. 

Paul Renaud 

PaulRen's picture

inefficiently priced value choices

Stock investors like to talk about so called “value traps”. So called “Wall flowers” and others which just never flourish stock price wise.  Fair enough.  But the opposite is true as well -rarely explained!  Call them inefficiently priced value choices.  Where brokers and institutions alike only consider large cap stocks, ignoring the rest... a practice going for decades. Its because: these have the handicap requiring high share trading liquidity. Yet high net worth investors don’t have this same prerequisite and so have a true -long in making- pricing inefficacy, advantage! In Thailand this makes “toute la divergence” -as overall such pay double the SET averaged in dividend yields, often around 5% and have higher long term growth rates along with less volatility/correlation to Western markets.

PaulRen's picture

Institutions must ignore the best investor choices here.

Most institutional funds are just too big (i.e. on asset under mgt.) in size to take advantage of many emerging counties' investor jewels.  Fact is, many of SE Asia successful companies' are medium or smaller in mkt. cap. size.  So then, de facto, not qualify on daily shares traded' liquidity requirements by such bloated institutional funds.  Result is: such institutional funds chase the same "crowded trades" around the few large(st) cap. stocks, which then do meet their mega liquidity then ignoring the "diamonds in the rough" which are "less filling while taste great". Investor wise.


Subscribe to RSS - PaulRen's blog