’s the smaller cap.’s !

PaulRen's picture

Defensive stocks in a cautious environment. Food for thought.

The food stocks, which is a smaller S.E.T. sub-sector, has many neat growth companies; at lowest valuations. Our list has double digit annual dividend returns and high US dollar (or equivalent) revenues; this adds currency devaluation insurance.

Here are in fact indirect beneficiaries or they have no effect from the current economic slowdown. (See comment on President Rice in just previous write up). Further imagine the scenario in late "97 and "98 of falling local interest rates.

Below are some numbers. We first narrowed this list to 15 companies which are capitalized at around 420 mill. US $ or, a bit over 10 Billion, Thai Baht.

On trailing last 4 quarters earnings, average p/e is: 4.6

Average annualized dividend, over past 4 Q’s : 9.9 %

Average price to book value: 0.82

We further pruned our list down to four, capitalized at 130 mill US $ or 3.2 Bill. Here are the real "jewels":

Their average p/e is : 2.5

Their average yield is: 12.2

Their price to book is: 0.68

We know that these are among best values on the Thai stocks exchange currently and want to be on record of adding these to our now preferred purchases...(the actual names of these is released today in the subscribers version).

Best Regards,

Paul A. Renaud.