An updated Thai stocks introduction letter to all visitors here.

PaulRen's picture

An open introduction letter to all registered visitor & members. (Sorry for the repeat). frowns upon issuing IPO's to non-Thais here while at the same time not offering the IPO (Initial Public Offering) prospectus, in the English language.  Which however is offered to institutional foreign investors.  Gulf Energy was last years largest Thai IPO.  The company confirmed to us it has the English language prospectus which was offered to institutional investors abroad, but not to individual foreign investors in Thailand! Why?  Foreign and Thai investors in IPO's are as the Thai SEC states  "encouraged to read this before investing",  besides they click a box at their Thai broker accounts that they did, even while its not available in English.   In my professional view, offering IPO's to a class of investors without the availability of a readable prospectuses to another goes against proper international Securities Industry standards or protocol regarding this.   January 31th 2018.    

Marketing officers here do not see themselves as wealth creators.

Thai broker practices are as trading oriented as ever!  Don't ask any questions, just trade seems to be their entrenched motto. Day trading and using the stock market as a long term investing/savings mechanism is completely co-mingled & camouflaged.  Where winning positions are traded-out and in time to a portfolio of laggards; unprofessional investors are turned into traders so often to their own peril. 

In time, many studies have shown retail investors which frequently trade so often loose money.  With high remorse these walk away with pain and go talking bad to friends about the SET.  When it was their strategy and mkt. officer ineptness which so often failed them!  Marketing officers here do not see themselves as wealth creators, only trading & transaction biased.  In many ways its the failure of an industry.  Research is difficult to get, broker reports are less then expected, insider trading does happen -and the press is often wrong/hyped.  MD's of companies are reluctant to say anything due to stringent new SEC laws, yet the biz. press does not seemingly have any restrictions. Institutions have big advantages because they get far better research, besides the IPO prospectuses.  Their dis-advantage is they can only invest in higher liquid stocks. Hence the dire need for retail investors to fill the gap.  But these have little information besides their often inept mkt. officers behind. 

The numbers show some for some time how Thai retail investors have much decreased SET participation, this from their dominant position in the past -to now less then half.   Such a huge market share drop would raise grave concern anywhere, but here and on this,  I never see that mentioned.

During this more dire environment and having stated all the above,  I have in fact for this year identified a very promising company whose stock price in my view remains considerably under priced at present besides lots of future growth in a desirable industry -besides no debt.  PPS (1.51) pays a 2.7% dividend currently and in my view this will grow nicely into the forseable future.  Take a look here at my original report/company visit late last year here:

Of course investors/viewers/members should always diversify & I here only state my viewpoints.  All stocks have risks and can go down in value, but to me this one is particularly promising presently, as I see it as a medium term investor!  I think at some point before or right around Thai elections, PPS could be valued much higher.

Best Regards,

Paul A. Renaud.