Bangkok finally gets its new green buses.
A smaller MAI listed Thai company with high corporate governance rating, gets the big contract.
The real problem with stock mutual funds nobody seems to mention is that these manage a large pool of funds, well beyond 100 mill. $ and often more. This so makes it impossible for a fund manager to consider smaller capitalized companies, due to liquidity, which however make up together the bulk of the Thai economy. For many years these stocks overall performed much better then the SET index, and I have ample proof of this...ha soo many missed it here. Yet, in the past 3 years they have lagged...many are hoovering at 5 year lows. One reason is that neither the broker nor these acclaimed funds can/do consider these for various reasons, not least their own obsession with big trading liquidity. Thai brokers just want you to trade/speculate and smaller companies are not conducive for that. Also consider that in the past Thai retail investors made up 60 to 70% of average daily trading SET volume vs. barely 40% at present.
This demonstrates the overall failure of the Thai broker industry to say the least. The key question now is: with so many smaller faster growing companies, run by the backbone of Thailand is it not time to invest what is out of fashion and oversold. I think selectively, yes. As to information, there are ways to get that...but most people here think the internet gives them "a birth right" for free information. So you get the good with the bad...and what you pay for. Good & unbiased professional information/opinions is like a good investment, not a cost. Smaller individual investors have huge but often untold advantages...
Look at the long Bangkok bus saga. For over 10 years Bangkok good people have been waiting for new more green buses. Well they are getting them now! As the court and other hurdles have finally just passed, and some 400 will be delivered shortly...and more next year. A smaller Khon Kaen city, called CHO Thavee (CHO, 1.47) based company is at the forefront of this (!)...and will now benefit greatly. Yes, I have visited them in person them and follow CHO closely. Yet nobody writes about this company, and I bet it features in no (or barely no) fund ownership, nor broker buy list, as its just too small for these gnomes, handicapped by their own size.
But not by us individuals! This company stock price is very low currently around 1.47 Baht, vs. over 5 Baht 4 years ago. While earnings are now exploding due to it now all happening, Vs. 4 years ago when it was trading around 5 Baht, on its "going to happen" , back then. This company is also at the forefront on building new coming light rail trains in that city and Phuket...and more.Paul A. Renaud. www.thaistocks.com