Always sell when in a bubble. Avoid Thai IPO's for now.

PaulRen's picture
Category: 
Industry

Lots of crying here now by many angry global investors whom failed to nail profits last year when US lead stock/bond markets were clearly exuberant.  Surely its up to investors to at times demand some selling when mkts. are in a bubble.  Regardless of the investor objective. Not just await the fund manager to make that call. Do realize, institutional investors and fund managers have an age-old conflict of interest: as if they move mostly into cash for a while, they have a hard timing justifying any of their fees.  

Thai SET's largest IPO, year to date, BETAGRO (37.75), debuted today disappointing -dropping some 5% from its 40 Baht IPO price, as of late morning trading.
Disappointing as since it was priced & subscription time, in late September, since then the Food index is up some 4.8% and the SET index up 5% .  My view is the investment bankers overpriced the deal as so often.  Hence my view is now not want to subscribe anymore to any Thai IPO's until something meaningful changes.  

Paul A. Renaud.
www.thaistocks.com