S&J no longer recommended buy.
Basicaly, I am now concerned about S & J's ambitious (planned completed in mid-'98) diversification, into private electric power producing under the smaller, SPP project. (Small Power Producers)….
The Asian Wall Street Journal of August 14th, '97, quotes Mr. Siridat, the Assistant Gov. of the Electrice Authorithy Of Thailand (EGAT) as saying:"This could mean a loss of 1 Billion U.S. $ to their businesses". Mr. Siridat was clearly reffering to both IPP and SPP projects. EGAT, as is reported in this same article, will reduce purchasing 1,000 megawatts, from the 4,600 originally planned. Since electric demand in Thailand has always been highly sensitive to general economic activity, it is obvious that these new private power producers will have some difficulties in selling all their new power-capacity.Economic activity for Thailand is now expected to fluctuate between 3-4% for both 1997 and 1998. Hence the demand for new incremental electric capacity will be greatly reduced.
This new reality, combined with a certain frustration in getting enough information from S & J, has convinced me to look elsewhere for now.
Regards
Paul Renaud.
