Often favor/focus on smaller & mid cap. companies, but do note this.

As often mentioned and here adhered to since 1997, I usually favor and focus on smaller & mid cap. companies here for investment, as I say these "often taste great and are less filling".

This is because for the most part these are ignored by institutional investors and local broker alike, mostly due to shares liquidity constraint these have.  Yet, smaller cap. Thai companies usually grow faster and have higher dividend yields while being often ignored; their stock prices are so often inefficiently under-priced.  As these pay high dividends this underpricing can only go on so long.  When they wake up, as they often do at some point, trading volume soars.  While this niche investment mantra worked very well for many years, smaller cap Thai stocks here way underperformed, entering a long bear market, from late 2017 to early 2020. We can see this looking at index graphs like MAI ans sSET index.  This changed with some gusto in early April 2020 (I called the bottom back then here, posting at my front page), when due to long sagging and so many individuals locked-down on Covit. Hence a resurgence came about and since then, to outperforming the big cap SET index.  There are many individual Thai investors which by pass brokers parlor and do their own thing while being very cognizant to what I write here for long.

On the other hand we must recognize that such smaller companies have less information with at times less good corporate governance, or worse.  While many such represent the "moral majority", others are "lame ducks/wall flowers"  -or worse.   Its a trade off and risk, worth pointing out.   Having long on location full time experience is essential but is still no guarantee in avoiding such investor-traps.  In recent years such traps have been on like CHO, PPS, TTCL and hopefully now not PPM?  DEMCO, from the long past was also a fallen angel -yet gave many here a big chance to nail big profits along the way.  One thing to note is how I walked away from these in due time -and moved-on.  Often long term investor success is in what you have avoided -and what you did when you had a dud, which we all have over time.

I have first and foremost here always advocated to take profits on a big price surges above 50%.  Recently make one big exception with TOG (9.20) which I still rate a buy, despite its nice 50%+ advance since choosing, only due to strong fundamentals just re-affirmed with the 2Q earnings announced last week. But as a side note, I did view taking profits when it hit 11.70 early this year. But view in still owning it back now, investor wise.

The individual investor alternative is to stick to most only Thai big cap's which however are a "crowded trade", in that these are over-owned and often over priced due to being institutional darlings while over hyped by most Thai brokers.

Best Regards,