Ticon, a short update
Ticon, the success continues. Here is a short update -and an explanation on the TFUND's recent dividend performance. (However see the comment/member post days after the publication of this article)
Ticon just set a new high price yesterday of 21.60, or increasing some 300% in value (dividend adjusted) since I pounded the table on this strongest-buy view posted here starting in year 2004.
Since, I have been continuously bullish on Ticon and while I did see some pauses in the stock price, I am and remain a Ticon bull. Some members have asked about the TFUND (10.5) which has also performed well as a pure income fund, generating an over 8% yield to date and now recently a 5% capital gain as its trading 5% above PAR. Unlike some other funds, the TFUND owns outright (not long lease) its properties/factories. The fund is ever increasing in size which is good for liquidity, in time this should narrow the gap of its current yield, as compared to the 10 year Thai government bond yield, currently at 4.2%. The previous 2 quarters’ dividends were both at 0.22 Baht. This was partly because of the profit made on the sale of 2 factories to one tenant. The forecast distribution at the last asset acquisition/capital-raising in April was 0.805 Baht per unit per annum (i.e. 8.05% on par of 10), and you can see that the distribution over the past year has been higher than that (0.84 for the last 4 quarters), partly as a result of these factory sales. Clearly such opportunistic sales are difficult to predict.
I would like to see ING reinvesting such gains for longer term growth, but they make the point, with some justification, that any gain should be distributed to those who are unit holders at the time the gain is made. In any event, it showed a higher current yield to fund owners which is good.
The new Eco car project is a positive but let’s just say Ticon is not seeking to rely on this for its future performance! Paul A. Renaud.
