Make money on the Thai stock market

[george]

Mid-sized and smaller shares have been "artificially" ignored in Thailand for nearly a decade.

Read Paul A. Renaud's article at

http://www.thaivisa.com/thai_stock_market.0.html

Thanks Paul for the article!

Anyone here in the Thai Stock Market?

[Butterfly]

Mid-sized and smaller shares have been "artificially" ignored in Thailand for nearly a decade.

Read Paul A. Renaud's article at

http://www.thaivisa.com/thai_stock_market.0.html

Thanks Paul for the article!

Anyone here in the Thai Stock Market?

I am. What do you mean by smaller shares ? I think what you meant was smaller companies. Small shares are "odd" lots for trading.

[george]

You have ta ask the author what he means. Just posted his headline.

Butterfly, do you agree with Paul that it is money to be made on the Thai Stock Market?

[samuisam]

The truth is that there is a Thai price (cheaper) and a falang price (more expensive) on the Thai stock market - I was there and checked it out, they actually have both prices posted in real time on the big board.  It's across from the US embassy if memory serves correct.

[Butterfly]

You have ta ask the author what he means. Just posted his headline.

Butterfly, do you agree with Paul that it is money to be made on the Thai Stock Market?

A shitload. But you don't want to advertise that in public, it will just fuel the SET index. Btw, Thais are back into the game big time and this is worrysome now.

Our average Portfolio went from 10 millions bath in 2001 to 30 millions bath in July 2003, not bad, but I am sure that there are a few speculators who did better than our "conservative" portfolios. I am not including the dividends, which is another 1.5 or 2 millions bath alone per year. Of course, not everything is a "buy" in this market and there are some really "shitty" companies. The difficulty is getting the proper information as translation of the books in English are full of mistakes (confusing FY 2002 and 2001 for comparison, and showing increases as "decreases"). Really tricky but interesting. If anyone interested, I can provide "financial tools" for farangs who wish to invest here but I am not free  

[Butterfly]

The truth is that there is a Thai price (cheaper) and a falang price (more expensive) on the Thai stock market - I was there and checked it out, they actually have both prices posted in real time on the big board.  It's across from the US embassy if memory serves correct.

It's a little bit more tricky than that and you can make  money in both local and foreigner shares. This is not even an issue when you trade as long as you do the NVDR trick  

[george]

A modest 100K THB invested in Bangkok Bank shares today morning, and sold in afternoon, gave a profit of 11K in one day. Not bad! Only if you did it, of course.

Thai Hot Stock: Bangkok Bank +11%; Progress in Debt Cases

BANGKOK (Dow Jones)--Bangkok Bank PCL (H.BBK), Thailand's largest commercial bank, has jumped 11% Thursday afternoon, buoyed by investor optimism due to progress in the debt restructuring of its major debtors, Thai Petrochemical Industry PCL (H.TPE) and TPI Polene PCL (H.TPI).

"News about the progress in the debt restructuring of TPI and TPI Polene has given a boost to Bangkok Bank's shares," said Phaibool Rachniyom, strategist at ABN Amro Asia Securities.

I am looking for  Any Race Chinese Malay Indian Others FemaleMale

My Mobile Phone      

 

At 0812 GMT, Bangkok Bank was up 11%, or THB7.50, to THB74.50. It was the most active stock in terms of value, with 11.8 million shares worth THB853 million changing hands.

The Stock Exchange of Thailand Index was 2.2% higher at 532.49 points.

Bangkok Bank is a major creditor of TPI, which has total debt of around US$3 billion, and TPI Polene, with total debt of $1.1 billion.

Thailand's bankruptcy court and the finance ministry are seeking ways for TPI and TPI Polene to streamline their operations and maximize their asset value. The moves are expected to benefit the companies' debt restructuring.

[Nathan@Thaistocks]

Butterfly is right, the opportunity is there to make a ****load.  Most people dont realize that the SET Index is up 49% year to date.  And is in fact the second best perfroming stock market in the world this year so far (Pakistan is #1, yet hardly as stable as Thailand), yet it is largely ignored by both Thais and Foreigners.  

With respect to Thai prices and falang prices there is no difference anymore with NVDRs setup, so there is no discrimination there.  In the older days it was the individual falangs who had the advantage as they could purchase local shares and then register them as foreign and sell them for a premium.

If anyone has any questions about investing i.e Foreign shares vs. Local shares please ask or come to the website.

Butterfly, the implied meaning of smaller shares was smaller companies, sorry for the confusion.

Nathan Szabo

Thaistocks.com

[samuisam]

What are the reasons givien for charging falangs a premium?

If I were a Thai broker/floor trader, I would simply watch for a falang order and then buy the stock and immediatly sell it to the falang, making a quick profit!

???

[exchange1973]

Hi there,

just a short question:

what us / european /asian stocks can I trade at Bangkok stockexchange, which are NOT thaistocks?

THX & GTX

exchange1973

[Nathan@Thaistocks]

What are the reasons givien for charging falangs a premium?

If I were a Thai broker/floor trader, I would simply watch for a falang order and then buy the stock and immediatly sell it to the falang, making a quick profit!

???

The 'reasons' don't really exist anymore as previously mentioned, but the 'premium' was because there are restrictions on the foreign ownership percentage.  And as the foreign ownership level would increase towards its limit then those shares would earn a premium (basic supply vs. demand).

Besides, no one was really getting 'charged' a premium, there is only one buyer and one seller, i.e a falang can sell to a falang, just as a falang can sell to a thai broker.

Individual Falangs could and can always buy local shares, it was the large institutions that could not buy local shares, so its not really a discussion for individual investors and also add to the fact that this discrepancy doesnt really exist anymore.

[Butterfly]

What are the reasons givien for charging falangs a premium?

If I were a Thai broker/floor trader, I would simply watch for a falang order and then buy the stock and immediatly sell it to the falang, making a quick profit!

???

The 'reasons' don't really exist anymore as previously mentioned, but the 'premium' was because there are restrictions on the foreign ownership percentage.  And as the foreign ownership level would increase towards its limit then those shares would earn a premium (basic supply vs. demand).

Besides, no one was really getting 'charged' a premium, there is only one buyer and one seller, i.e a falang can sell to a falang, just as a falang can sell to a thai broker.

Individual Falangs could and can always buy local shares, it was the large institutions that could not buy local shares, so its not really a discussion for individual investors and also add to the fact that this discrepancy doesnt really exist anymore.

Your site is nice but I don't have access to the interesting parts. Do you have to pay ?  

we are about to launch a similar service here in Thailand for the public (only foreigners, no Thai investors allowed) so they can use our "tools" to beat the market or at least beat the "losers" shares, but the service is expansive (from $2k per year) so it is not suited for all investors.

What is it you provide exactly ? your website is not very clear

[Butterfly]

Hi there,

just a short question:

what us / european /asian stocks can I trade at Bangkok stockexchange, which are NOT thaistocks?

THX & GTX

exchange1973

Why would you want to do that ? you will probably pay a premium in terms of exchange rate and broker fee.

[Nathan@Thaistocks]

quote]

Your site is nice but I don't have access to the interesting parts. Do you have to pay ?  

we are about to launch a similar service here in Thailand for the public (only foreigners, no Thai investors allowed) so they can use our "tools" to beat the market or at least beat the "losers" shares, but the service is expansive (from $2k per year) so it is not suited for all investors.

What is it you provide exactly ? your website is not very clear

Butterfly, I agree the website is at times confusing, but we will be re-launching it within a month to fix that problem, stay tuned!  What exactly are these magical 'tools' you keep alluding too?

I've attached a little marketing piece we usually send out to expalin about Thaistocks.com and why it exists:

I am involved with a website called Thaistocks.com.  Thaistocks.com has been publishing its views on the Thai stock market since 1997.  We focus on publishing independent and objective investment research.  Paul Renaud, the founder of Thaistocks.com, is an ex-Morgan Stanley broker and has over fifteen years of on-location experience in Thailand.  Paul has appeared on CNBC Asia six times discussing the often under-reported Thai stock market.  Forbes Global has reported on TS.com on three separate occasions.  

One of the main reasons behind Thaistocks.com is to eliminate the unknowns and myths surrounding Thailand’s economy.  The Thai economy is a resurging and diverse economy that has learned from its past mistakes.  It is domestically driven by high consumer spending and has an ever-expanding export sector.  Many foreigners do not realize these facts.  For example, Thailand is the world’s fifth largest food producer.  Companies like Ocean Glass (glassware), Tipco (beverages), and Charoen Pokphand Foods (frozen foods) are world leaders in their respective industries.

 

Should you wish to follow-up or have any other questions at all please feel free to reply to myself or you may contact Paul directly at [email protected].

p.s.  It is a pay-site, but if you go to the "whats New" section you will find some free articles.  We do not offer specific investment advice and do not claim to have any special 'tools', we focus on finding real companies with strong growth and profit potential.

Sincerely,

[exchange1973]

@butterfly

Why i want to do this? There's a very profitable business called arbitrage-business! It is based on different prices at different exchanges. If this spread exceeds the fees you generate a profit! It works very well between Europe and US!

GTX

exchange1973

[Nathan@Thaistocks]

Foreign vs. Local Shares on the SET explained: http://www.thaivisa.com/local_foreign_shares.0.html

[Butterfly]

@butterfly

Why i want to do this? There's a very profitable business called arbitrage-business! It is based on different prices at different exchanges. If this spread exceeds the fees you generate a profit! It works very well between Europe and US!

GTX

exchange1973

This is interesting. Never heard of it before. Probably a small obscure investment strategy that most people ignore. Good call. But I would think that the currency risk and the exchange fee woud more than make up for the spread. But I guess it's possible that prices are not "perfect" and therefore sufficient differences exist for arbitrage. Could you provide more info on this ?

how do you resolve the shares ownership or swapping ? what about clearing ?

Thanks,

[Butterfly]

Butterfly, I agree the website is at times confusing, but we will be re-launching it within a month to fix that problem, stay tuned!  What exactly are these magical 'tools' you keep alluding too?

Ok, if you get enough clients to pay, I will try to hookup with your site. How does that sound ?

[pnustedt]

I have a portfolio of unit trusts, shares on the HK stock mkt, property thru' spouse in Thai and cash.

My unit trusts with Thai investments have done pretty well and I am interested in investing some of my cash in Thai stocks - what advice?

Maturity date - medium term, i.e. 4 yrs and then I will retire a US$m.

[Butterfly]

I have a portfolio of unit trusts, shares on the HK stock mkt, property thru' spouse in Thai and cash.

My unit trusts with Thai investments have done pretty well and I am interested in investing some of my cash in Thai stocks - what advice?

Maturity date - medium term, i.e. 4 yrs and then I will retire a US$m.

Ok, I will send you some info in PM if you are interested. My average portfolio is between 750,000 and $1m

The boom in SET is going to happen only for the next 2 years. After that it will be a "dangerous" bubble. It could even happen already after 1 year 1/2

[Peeter]

@samuisam,

what are you talking about?

thai prices and farang prices;

I don´t get your point. Do you have any idea how clearing works?

[samuisam]

Peeter - I do not know how clearing works.

There are two prices listed for stocks on the SET.  One price is higher - it is what I would pay.  The other price is for Thais - it is cheaper and what they would pay.  

Simply buy shares at a Thai price and instantly sell to a falang at the falang price and you make a profit!  Or, just wait for any falang to buy any stock at anytime, purchase the stock at the discount price and immediatly sell it for a profit.

There is one price listed on the DOW.  It is the same price anyone would pay.  I prefer to work in simple straight forward systems.

[Nathan@Thaistocks]

Peeter - I do not know how clearing works.

There are two prices listed for stocks on the SET.  One price is higher - it is what I would pay.  The other price is for Thais - it is cheaper and what they would pay.  

Simply buy shares at a Thai price and instantly sell to a falang at the falang price and you make a profit!  Or, just wait for any falang to buy any stock at anytime, purchase the stock at the discount price and immediatly sell it for a profit.

There is one price listed on the DOW.  It is the same price anyone would pay.  I prefer to work in simple straight forward systems.

SamuiSam, no one forces you to buy the more expensive price, you can purchase either of the two.  Your idea of buying cheap Local shares and selling them as Foreign may work in theory but not in practice.  The only time the foreign price is at a premium of the local price is when the foreign limit is reached, and when the limit is reched you CANNOT buy Local shares convert them to Foreign and sell them for a premium.  The market is much too efficient to permit a glaring riskless profit like this to occur.  Its really not as complicated as you think because this does not happen much anymore due to NVDRs.  PLease read the article below and your questions should be answered:

http://www.thaivisa.com/local_foreign_shares.0.html

[en184]

for good investment advice, open an account with Seamico.  They offer an excellent online brokerage service, daily research direct to your inbox, voting rights on farang shares, dividends straight to your brokerage account or sent to your thai bank account.

I know PR will agree that Seamico are good, since he often advertises in the stock spot board on thier website.

You can aslo ask questions to the analyst.

[en184]

The seamico website is www.seamico.com..

Seamico is so good, that even thai stocks advertises in thier snake board.