TOG the top choice here of late, and clear winner.

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“IF you can’t beat them, then don’t join them!" Part 2.  TOG the winner.

In my last member article, I made investor things very clear to you all:   “IF you can’t beat them, then don’t join them!  Here is what I view doing rational investor wise”.  Things always change -and not necessarily for the better. The Thai broker and its SEC/SET industry has not evolved for the better in my professional view over say the past say 8 years, hence I sort of given up on that until something changes.   This for all the reasons often written about here in the recent and more so long past.  At the same time, and this is a very important distinction: I know there are some terrific -often Thai smaller cap companies- which are doing very well, pay high dividends, are honest and yet remains almost totally undiscovered as they are rarely if reported on by brokers nor the Thai biz. press, nor elsewhere.   Of course there are traps and set backs...and its never that easy nor clear cut. The key has been to walk away at times.   But this time I think I went all out and then some, and hit a sort of jack pot. Watch and see in days to come.  All just when Crypto takes yet another "bite in the dust" and then some. 

In my last article and before I clearly pounded on the table on TOG (9.65) as my core top choice for some time, for all the reasons and good analysis stated. Members had plenty of opportunity to load up when the stock dropped to nearly 9 last month.  Then. to diversify, I also there favorably mentioned AIT and AUCT at lower then current mkt. prices -with PPM still my “wild card”, as it  has not yet delivered earnings.   See that article here, just to repeat this message:

Late yesterday TOG reported spectacular 3 Q. net earnings, where both revenues and earnings soared, yes to new heights.  3 Q. earnings rocked up to 0.24 Baht per share, or up 120% compared to the same Q. last year. Or, up just about 30% for the first 9 months this year vs.,  last same period.   “In Q3/2022, The Company and its subsidiaries had earned total revenues from sales and services of 758 million Baht which was increased by 206 million Baht or 37%...  In the first nine months of 2022, The Company and its subsidiaries had earned total revenues from sales and services of 2,093 million Baht which was increased by 383 million Baht or 22% from previous year.”    From TOG mgt. discussion Nov. 10th. 2022.

We so can see its most all on top end revenue growth with net and gross profit margins at record levels.  TOG has stated that its 4th Q is usually its seasonably best Q. for the year,  so I can see TOG earnings 0.85 Baht per share in 2022, or for a very undemanding 2022 p/e of 11.35!  Their long dividend record is very good as well, hence I expect the dividend yield on current mkt. price of 9.65,  to be well above 6% over the next 12 months.  TOG pays dividends twice a year.  Congratulations to all members whom loaded up on TOG, as I viewed and here stated doing, for all the reasons given. 

AIT/AUCT have not yet reported 3 Q. profits, so stay tuned.  But on PPM (2.38) my wild more speculative choice, I have not given up. It had a nice run earlier this year to 4.60, but then sank back down.  I think PPM earnings will be reported next Monday and its newly issued warrants should trade shortly/days thereafter!   To date PPM has been a disappointment dropping some 30% from where I first mentioned (but less so if you add the value of the upcoming 2 for 1 warrants already issued).  Yet, TOG has increased well over 60% since I here first mentioned here at 6 Baht (adjusted for dividends paid since), and yet it remains my top choice, as re-affirmed again and again of late.   In fact, I stated here that despite TOG up 50% (when it was up 60% a nearly year ago advocated some profit taking) I very adamantly viewed getting it back when it price corrected some month ago and of late.   With the TOG I made the rare and noble choice/exception not take 50% profits and walk away, as I usually advocate, all that told you, back then,  my strongest conviction.  Today evidenced by its very strong earnings 3 Q. report.

TOG to reiterate, is 60 year old global prominent reading/viewing established eye lens manufacturer here vastly benefiting from all that screen gluing, global baby boomers -besides Myopia generation.   A conservative company yet seeing its revenues and earnings soaring, on going.  The company recently announced a 530 mill Bank loan so to expand production and increase it robotics in its factories.  To my knowledge only one Thai broker follows this company so far, DAOL Securities, and does not  even mention their impressive expansion plans, which so create no new share dilution.  Based on the 3Q earnings released late on Nov. 10, they will have to significantly increase its earnings projections on TOG.

Best Regards,

Paul A. Renaud.