Small stocks are acting better and waking up.

First some housekeeping notes for us members on the auto mails which all of you should be getting, every time.

I now have the auto mail system rechecked and in place. This means whenever a new article is posted at the “NEWS” link, or a previous "member only article is so made free to all registered users, all members here are notified with another member alert.  Same as you should have just received a couple days ago.  I know this works correctly for me and another dummy member account I have set up.  I also got mail from one of you, confirming this as well.

Here is how it looks:

Dear Members,

 I just posted another member article, please log
on first and click on this link:

/index.php?module=pagesetter&func=viewpub&tid=1&pid=1156  
 
This so assures all members knowing at once and together, what is going on.   Hence, the just previous to this article -is now viewable by all registered users. (The one where I review DEMCO’s annual report).

We members have build up a huge position in DEMCO, my top choice for some time, and I find it now important others get to know this great story! This stock just soared 10% in the past 10-12 days and today will be marked XD by 0.08 Baht, as of May 3.  All shareholders of record which own the shares as of today, will get this dividend which is payable on May 22.  This interim dividend is only for the second half of year 2011.  In late August there will be another interim dividend announced, for the first six months of 2012.

As we know its all happening for DEMCO now, at last, as they will install at least 2 mega wind turbines every week for many months- on and so all this will get increasing attention.  Also the 1Q. profit to be announced on ~May17/18   should/will show dramatic growth.  In the US wind energy is getting lots of positive attention/traction not as the alternative energy source but as a complementary energy source to others.  I agree with our lounge posting that Wind energy seems to have better performance yields.  Offshore wind energy is still too expensive to make much sense.

Many smaller Thai stocks have woken up and acting better, at last. I think this is just the beginning.  I purposely don’t want to say to much now and so take a step back, as its the time to let your profits run! 

Here below is DEMCO's annual shareholder meeting report as shared with us by one of our most senior term members which had his Thai personal assistant attend in person, and reports back as follows, I quote exactly as was sent to me:

Notes From Demco’s Annual Shareholder Meeting held on April 26 2012.

“DEMCO, a builder of electricity and telecommunication networks, confidently guarantee the earning of this year will be more than 5000 Million baht ,The company has backlog in hand which announced on Opportunity day ( 28 Feb 2012 ) at SET building.

Electrical work                                   2169.30                 Million Baht
Mechanical work                                125.49                   Million Baht
Mechanical work and
Electrical Work                                  99.05                     Million Baht
Renewable Energy Work                     5877.80                 Million Baht
Telecommunication tower                      450                     Million Baht

Total                                                  8721.64                 Million Baht

**The solar project at Bo Ploy worth 845.41 Million Baht , the owner sold the project to another company but the company got another project which worth 241.85 Million Baht so now (25 Apr 2012) DEMCO’s Backlog is 8118.08 Million Baht**

DEMCO has a good future in the renewable energy business, as can transfer the electrical engineering knowledge to the renewable energy business and act as both a contractor and an investor, depending on the project. Currently, DEMCO have two wind projects which make 90-MW per project in Nakhon Ratchasima with a combined value of 2.6 billion baht. For these, DEMCO has built the foundation, the transmission lines to the selling points which are EGAT [Electricity Generating Authority of Thailand] substations access roads, the main substation, underground cables and so forth. DEMCO expect the wind project at Huay Bong 3 will be finished within Oct 2012 and begin functional working and start selling in Nov 2012. DEMCO will start receiving the earning in June 2013 and the earning payment will be every 6 months, 200 million baht per year. The progress of Huay Bong 2 project is approximate 25% complete, expect to be finished in January 2013, will start selling to EGAT in February and receive the earning in July 2013. Expect 2013’s ROE will be 22% from 12% this year.

In addition, DEMCO has the wind project at Rodjana worth 3200 Million Baht which would make 24-MW ( 8-MW/Project) and the wind project at Khao Kor worth 800 Million Baht in hand will start building in Quarter 4 and can recognize the earning next year. Khao Kor 60– MW project has been postponed because DEMCO has been waiting for EIA approval ,expect to start processing at Quarter 4 and start receiving the earnings next year.

DEMCO is also involved in the solar industry worth 500 Million baht and 3G project which DEMCO expect to receive the contract worth 450 Million Baht

On 15 April 2012 , a storm hit Tadluang district which made 270 electrical towers fall down , now is in the checking process with the insurance company but DEMCO will fix it and the insurance has to take care of the expense because DEMCO has signed the All Risk insurance contract but if DEMCO has to change the way for installing the electrical towers , insurance won’t be responsible for that but DEMCO has already added the expense would happened when setting the cost should be not over 100 Million baht.

She further explains as follows:

The falling towers were in HB 3 project, DEMCO can build the towers back in the same way but people in the village are worried that the towers will fall down on their houses again so DEMCO has to change the way to set up to be one side of the road has one electric circuit. Insurance will pay for the expense which expect not over 100 Million baht but DEMCO will set the electric circuit which cost will be charged at DEMCO but still in the insurance process so can't estimate the cost.   So the expense of this event seems to be under control.

There were about 95 people at the annual meeting -but no foreigners where seen.”