Week in Bangkok, new non-Thai stock pick.

PaulRen's picture
Company Visit

Dear long and loyal Members,

We had a great week in Bangkok and lots of fun with our daughter Suzana & friends, then all together attended the premiere newly released Movie, after which Thai reporters interviewed us.  Suzana "Suri" Renaud is an aspiring leading upcoming new actress in Bangkok.  University educated, self made, poised, humble and on the ball, if I may say so.  Some of you will likely see the continued rise of Suri Renaud on the actor/cinema/TV stage.

Then last Thursday I visited at length with the 3 seniors of CHAYO (4.42), another great growth company which is benefiting from the current Thai economic slow down. As I already mentioned in our member lounge.  As you all know I still prefer higher growth smaller and mid sized companies, vs. speculative trading ideas from inept and biased brokers.  I can see now lately smaller cap stocks are bouncing back and I think this trend has legs. This company does not own any real assets (excpect it offices), has over 150 employees and buys distressed secured and non-secured assets from Banks and other financials institutions. It needs capital to grow (so to by distressed assets) and does this by issuing low interest rate debentures, besides had a successful private placement around 3.80 Baht, just a few months ago.  It reported solid growth in earnings and I think this will continue. The company is an expert in what it does and has more then 20 years of experience.  I favorably view CHAYO as a growth stock, so advocate a buy.

Then, I also had an interview with a senior reporter for ASIAMONEY magazine, they will write a feature article on SET etc.. by August.  He also interviewed the Bank of Thailand Governor and with the SET president.  So was honored to be one of the others he sought out. (Remember the SET president went to the same US university as I did, University of Wisconsin.  :)  ) Of course I took the opportunity to mention many of the shortcomings and dared to again called hte Thai broker industry a failed industry, in my view.  I also made a point that there are select very good investments to be found on the SET/MAI, if one dares to go beyond the obvious. I did not mention an specific examples, as this wont' be published anyway.

PPS (0.77) is having its board meeting today, I still think something big will be happening there soon and the stock price has firmly bottomed!  Last week CHO went XW, meaning investors get 1 free warrant for every 2 shares they own. AUCT (6.75) continues to want to move higher all due to solid earnings growth, set to continue.  DEMCO (3.34) is also a bit stronger lately because they, at last, started the final constructions, even while they did not announce this to the SET as they should have.  They always promised me they would....but they did announce it in their SET OPPT. DAY talk in mid

Property firm GRAND is offering 6% bonds and if offered you brokers are supposed to tell you its credit rating, the time to maturity and if its a new bond offering, give you a prospectus.  I hear solar energy is coming back but also know that the profit margins in that business is very low.  Last week I bought some more UNIQ at 11.90, to add my position...remember I told you all about UNIQ around 10 some weeks ago.

New idea:  I lately also found a very good/solid highly reputable stock in the CBD Cannabis oil full spectrum oil and related high margin products, including pet food.  Its headquartered in Australia. No doubt, this is a very fast growing new industry and I think I found a/the high quality/reputable leader.  The company is  called  Elixinol Global Ltd.  EXL, which already exports to 40 countries and has major operations in Colorado USA,  its stock trades in Australia and the US, I favorably view this as an investment at current prices of 3.92 AU$, in Australia. It just recently reported its first Q. profit.   MayBank Kim Eng here can buy this stock for Thai residents, but not Yuanta.  It cannot be bought here by either in the US OTC market, as I understand.  On the OTC it trades around 2.79 US$ and is the same company, 1 for 1.  The founder and CEO makes a very solid high integrity impression Paul Benhaim, and can be viewed in various interviews on the YouTube.  The stock traded as high as 5.95 AU$ in March, and on this price correction I am a buyer.  You can its URL link:   https://www.elixinolglobal.com/site/content/   

I will likely have more to say about this latest choice, non-Thai company I did some considerable due diligence on; its my clear new pick in this explosive and viable new industry, and so its my latest outside the Thai stocks mandate, along with very big cap CHEVRON (1.25), which since here mentioned 2 months ago is so far outperforming the US market indexes -despite a fall in oil prices.  CHEVRON paid a 1.19$ dividend per share since.

Best Regards,

Paul A. Renaud.