Thai Stocks For Mid To Long Term Investors

[padeakin]

What the costs, fees, commission's and taxes of trading with an online SET trading account such as with AsiaPlus?

I am coming to live in Thailand later this year and am interested in trading.

Sort of you may have to wait a bit more then three days.

I rotate through the socks starting in March once I have qualified for the dividend I wait for a sale point above break even and buy another dividend stock.

You can find even Mai stocks that pay 5 to 8 % dividends. I then reinvest the dividends as a part of growth goals.

[Penefattore]

What the costs, fees, commission's and taxes of trading with an online SET trading account such as with AsiaPlus?

0.25% for trading by operator , 0.15% for online trading.

[ray23]

Ok guys I'm at a 75% cash position now.

When see foreign investors come back I will buy back exactly what I sold hopefully for less. I think that will be after the elections. But, I fully anticipate more rally's if not violence.

The one thing I hold now is a food stock, if it drops I will sale that as well.

Am I right I don't know ?

[ExpatJ]

Ok guys I'm at a 75% cash position now.

When see foreign investors come back I will buy back exactly what I sold hopefully for less. I think that will be after the elections. But, I fully anticipate more rally's if not violence.

The one thing I hold now is a food stock, if it drops I will sale that as well.

Am I right I don't know ?

You did well in getting into a cash position when you did- the SET dropped alot since then, there are some prime buying opportunities now. I largely and unwisely chose to ride it out, my Thai portfolio is down -11% now since march (though luckily i did some profit taking in March and got some good profit at that time)- but with the greek bail out i think there will be a SET (and global stocks) increase in the coming couple of months and we are seeing the spouting seeds of this mini recovery in the last week or so- My other stocks are also now recovering after being negative in the last month

My US stocks now +3%

Indonesia stocks +2%

My plan: i fear and expect further European turmoil in the medium term (6 months plus) so as soon as my Thai stocks are near to breaking even i will sell asap and wait for the next big global stocks drop and then take advantage of buying opportunities after that.

One piece of good news- i managed to find a tenant for my Jakarta condo- signed a 2 year contract with a Korean multinational that wanted a place for its executives- 2700 USD per month rent (lesson learned- negotiating with multinationals is way easier than individual tenants!!) And in indonesia tenants are obliged to pay rent in advance- so i got a nice check for 2 years worth of rent (Helped me to cope with my plummeting Thai stocks!)

Edited July 1, 2011 by ExpatJ

[ExpatJ]

Looks like good news for those of us invested in Thai stocks: a very positive response in the markets to the red party win- the thai stock market has had its biggest opening jump that i can remember- my portfolio is up 5% in the first hour this morning

Thia baht also strengthening.

From Bloomberg "“The majority victory is a very welcome outcome and foreign investors will come back very quickly,” said Frances Cheung, a senior strategist at Credit Agricole CIB in Hong Kong. “It cleared a part of the uncertainty and sentiment will stabilize.”"

[Lorin]

Hi guys, i plan to enter trading SET online, can you please recommend some good local brokers? I talked to Kim Eng, they seems to be ok except not giving margin to foreigners and some strange rule of "From 1st April 2010 onwards, all account types and every channel both Sales Representative and Internet channels collect minimum commission charge 50 Baht per day" I mean even if I am not trading that day they will collect some fee? Any other advices for beginner like me will be appreciated.

[thaibutty]

Looks like good news for those of us invested in Thai stocks: a very positive response in the markets to the red party win- the thai stock market has had its biggest opening jump that i can remember- my portfolio is up 5% in the first hour this morning

Thia baht also strengthening.

From Bloomberg ""The majority victory is a very welcome outcome and foreign investors will come back very quickly," said Frances Cheung, a senior strategist at Credit Agricole CIB in Hong Kong. "It cleared a part of the uncertainty and sentiment will stabilize.""

Too bad that I went mostly in cash beginning of last week, so I missed big gain since mid last week and specially today. However, the stocks which I kept, were all up. Interesting ot note that it was mostly foreign buying that drove the market, while domestic investors were largely selling. As I do anticipate problems in the weeks to come, I am not overly optimistic on the market.

If the PT is going to keep their promise and try to increase minimum wages this will certainly kill the economy and cause major inflation. So I will stay out of the market for now.

[ExpatJ]

Hi guys, i plan to enter trading SET online, can you please recommend some good local brokers? I talked to Kim Eng, they seems to be ok except not giving margin to foreigners and some strange rule of "From 1st April 2010 onwards, all account types and every channel both Sales Representative and Internet channels collect minimum commission charge 50 Baht per day" I mean even if I am not trading that day they will collect some fee? Any other advices for beginner like me will be appreciated.

I use SCB securities- i feel more confident giving my cash to a bank rather than just a trading house (though i did put some in Kim Eng) - SCB are very good- they send out lots of good research material and there commission if you use a broker is lower than kim engs (but kim eng is lower if you make the trade yourself online).

[ExpatJ]

Looks like good news for those of us invested in Thai stocks: a very positive response in the markets to the red party win- the thai stock market has had its biggest opening jump that i can remember- my portfolio is up 5% in the first hour this morning

Thia baht also strengthening.

From Bloomberg ""The majority victory is a very welcome outcome and foreign investors will come back very quickly," said Frances Cheung, a senior strategist at Credit Agricole CIB in Hong Kong. "It cleared a part of the uncertainty and sentiment will stabilize.""

Too bad that I went mostly in cash beginning of last week, so I missed big gain since mid last week and specially today. However, the stocks which I kept, were all up. Interesting ot note that it was mostly foreign buying that drove the market, while domestic investors were largely selling. As I do anticipate problems in the weeks to come, I am not overly optimistic on the market.

If the PT is going to keep their promise and try to increase minimum wages this will certainly kill the economy and cause major inflation. So I will stay out of the market for now.

I think the global mini rally thats going on since the recent greek bailout will continue (i hope) for at least a month...at least enough for my Thai stocks to break even (they went down alot in the global stock clump prior to the greek bailout) then ill sell. I'm actually confident the Thai economy will do quite ok, but I think there will be another global stock slump in the coming months, a large drop, which will effect the SET- i want to be cashed out by then to take advantage of buying opportunities at the bottom of the market...

[ExpatJ]

Given the deteriorating sitiuation in the Euro zone I cashed out 50% of my Thai stock portfolio this morning (breaking even on that portion luckily due to the mini rally of last 2 weeks) - i plan to shift some of this to KBANKs GOLD Fund (KASGOLD:TB on bloomberg) and save the rest for bargain buying opportunities after the stocks decline with the Euro crisis in coming weeks....

Anyone else changing their portfolio position because of whats going on?

[ray23]

Well True is back in the game. The contracts have been ruled legal and apparently CAT is going abide by them. It's @ 4.82 now.

Summation of my first year. lots of mistakes, but read myself to death stayed up with what happening on the market. Like it was a religion.

I Pulled out 150K baht profit, with the craziness going on at one pint actually had all the money out. Went back in with a base of 300K, I will now buy in 50K increments every ninety days or so, if something looks good. I'm heavy into dividend stocks, with only one being a growth only TRUE.

I would sum up by saying I made more right decisions then wrong ones.

[wordchild]

Well True is back in the game. The contracts have been ruled legal and apparently CAT is going abide by them. It's @ 4.82 now.

Summation of my first year. lots of mistakes, but read myself to death stayed up with what happening on the market. Like it was a religion.

I Pulled out 150K baht profit, with the craziness going on at one pint actually had all the money out. Went back in with a base of 300K, I will now buy in 50K increments every ninety days or so, if something looks good. I'm heavy into dividend stocks, with only one being a growth only TRUE.

I would sum up by saying I made more right decisions then wrong ones.

sounds like a pretty good year all things considered. Do you still use Thaistocks.com? i saw some comment on another site that he was going to close it down.

[ray23]

Well True is back in the game. The contracts have been ruled legal and apparently CAT is going abide by them. It's @ 4.82 now.

Summation of my first year. lots of mistakes, but read myself to death stayed up with what happening on the market. Like it was a religion.

I Pulled out 150K baht profit, with the craziness going on at one pint actually had all the money out. Went back in with a base of 300K, I will now buy in 50K increments every ninety days or so, if something looks good. I'm heavy into dividend stocks, with only one being a growth only TRUE.

I would sum up by saying I made more right decisions then wrong ones.

No I haven't used them for sometime now, I do recommends if your new to investment pay up and get the help while to you learn. Not a magic bullet you still hew to play catch up and hit the books. Find people to discuss things with.

They may be open to new membership I don't know.

He is a very knowledgeable guy but, he plays in different league then me It helped me. But I couldn't wait as long as he can to build cash. My goal now is to get strong enough portfolio so I have to checked no mare then a few times a year, not there yet. But, closer then I was last year.

Not many people who are investors have the patience to deal with a newbie, finding ones who did through postings like this was a major help to me.

Learning what stocks to buy is one thing. Learning how to find them on your own is very important. In the end it's your money on the table up to take care of it. There are several different tools available on the net to assist in making decisions.

Paul seemed like an OK guy.

sounds like a pretty good year all things considered. Do you still use Thaistocks.com? i saw some comment on another site that he was going to close it down.

[ExpatJ]

Well True is back in the game. The contracts have been ruled legal and apparently CAT is going abide by them. It's @ 4.82 now.

Summation of my first year. lots of mistakes, but read myself to death stayed up with what happening on the market. Like it was a religion.

I Pulled out 150K baht profit, with the craziness going on at one pint actually had all the money out. Went back in with a base of 300K, I will now buy in 50K increments every ninety days or so, if something looks good. I'm heavy into dividend stocks, with only one being a growth only TRUE.

I would sum up by saying I made more right decisions then wrong ones.

sounds like a pretty good year all things considered. Do you still use Thaistocks.com? i saw some comment on another site that he was going to close it down.

I was interested in signing up to thaistocks.com but after an email discussion with the owner i found some of his responses to be immature and child like- so much so that i realised i couldnt trust the judgement of someone who writes and behaves like he did. It was quite bizarre behaviour , so i didnt sign up.

[wordchild]

Well True is back in the game. The contracts have been ruled legal and apparently CAT is going abide by them. It's @ 4.82 now.

Summation of my first year. lots of mistakes, but read myself to death stayed up with what happening on the market. Like it was a religion.

I Pulled out 150K baht profit, with the craziness going on at one pint actually had all the money out. Went back in with a base of 300K, I will now buy in 50K increments every ninety days or so, if something looks good. I'm heavy into dividend stocks, with only one being a growth only TRUE.

I would sum up by saying I made more right decisions then wrong ones.

sounds like a pretty good year all things considered. Do you still use Thaistocks.com? i saw some comment on another site that he was going to close it down.

I was interested in signing up to thaistocks.com but after an email discussion with the owner i found some of his responses to be immature and child like- so much so that i realised i couldnt trust the judgement of someone who writes and behaves like he did. It was quite bizarre behaviour , so i didnt sign up.

yes that is his reputation and a little bit how i found him when i used to use the site a few years ago. I also felt it got a bit stale and repetative. Nevertheless he had a real golden period after the end of the Asian crisis from 2000 on and i had a couple of great ideas off the site incl one of my best ever investments.

According to someone who knows him slightly he gets hacked off because a few people have made some serious money out of some of his ideas (far more than he has) and over the years he feels he has not had sufficient gratitude for this. basically,though, i think he is quite a talented guy.

[ray23]

STOP LOSS

Book I'm reading recommends 2%. I've been using 10%. 2% seems very narrow for the SET

What do you guys use?

[Dag]

It will take some time to read through all this thread in detail....but in the meantime do Thai stocks, good stocks with good history return good yields.

I would like to what can be expected from such stocks in both dividends and gains and do they pay out fully franked dividends ?

[ExpatJ]

STOP LOSS

Book I'm reading recommends 2%. I've been using 10%. 2% seems very narrow for the SET

What do you guys use?

2% is too low for sure, 8% is what i would use...but personally i dont even use stop losses because my ultimate investment hoizon is 15-20 years (when i plan to sell most of my stocks to buy annuities or bonds for fixed income retiurement money) i am happy to wait and hold even when stock hits -20% assuming that within my time horizon they will eventually increase above what i bought them for!

[ray23]

STOP LOSS

Book I'm reading recommends 2%. I've been using 10%. 2% seems very narrow for the SET

What do you guys use?

2% is too low for sure, 8% is what i would use...but personally i dont even use stop losses because my ultimate investment hoizon is 15-20 years (when i plan to sell most of my stocks to buy annuities or bonds for fixed income retiurement money) i am happy to wait and hold even when stock hits -20% assuming that within my time horizon they will eventually increase above what i bought them for!

That's what hearing from he other guys I may have 15 years but, I doubt it. Should learned and started when I was much younger. Anyway got a good retirement so I can't complain.

Thanks

[maipasathai]

STOP LOSS

Book I'm reading recommends 2%. I've been using 10%. 2% seems very narrow for the SET

What do you guys use?

Hi Ray,

Are you sure they don't say 2% of equity at risk? I use ATR based stop so for more volatile stocks I have to adjust the size of the position so it equals 2% of equity at my stop. 2% makes sense and with 10 positions in the market my risk (in theory) is about 20% but the positions can be 100% of equity. Another rule I have is not to put more than 15% in a single position.

[ray23]

STOP LOSS

Book I'm reading recommends 2%. I've been using 10%. 2% seems very narrow for the SET

What do you guys use?

Hi Ray,

Are you sure they don't say 2% of equity at risk? I use ATR based stop so for more volatile stocks I have to adjust the size of the position so it equals 2% of equity at my stop. 2% makes sense and with 10 positions in the market my risk (in theory) is about 20% but the positions can be 100% of equity. Another rule I have is not to put more than 15% in a single position.

The Book was on Technical Analysis, using charting so I'm thinking he is referring to someone who trades a lot. I have finally realize that I'm a trader. That being said holding six months to a year. My risk threshold is lower then the normal trading person. I seem to be doing OK with that. Probably in the situation he was talking about 2% would be about right. I was curious it would seem that mine may have been to high at ten. Ten is lot recover in a short period of time. So I;m thin king 8% is about right.

Dag? The market here is just about the same as others. Government seems to get involved more. The dividends you see on the SET really are estimates. When the company declares its dividend I have never had one come lower then specified.

Hope that helps

[maipasathai]

STOP LOSS

Book I'm reading recommends 2%. I've been using 10%. 2% seems very narrow for the SET

What do you guys use?

Hi Ray,

Are you sure they don't say 2% of equity at risk? I use ATR based stop so for more volatile stocks I have to adjust the size of the position so it equals 2% of equity at my stop. 2% makes sense and with 10 positions in the market my risk (in theory) is about 20% but the positions can be 100% of equity. Another rule I have is not to put more than 15% in a single position.

The Book was on Technical Analysis, using charting so I'm thinking he is referring to someone who trades a lot. I have finally realize that I'm a trader. That being said holding six months to a year. My risk threshold is lower then the normal trading person. I seem to be doing OK with that. Probably in the situation he was talking about 2% would be about right. I was curious it would seem that mine may have been to high at ten. Ten is lot recover in a short period of time. So I;m thin king 8% is about right.

Dag? The market here is just about the same as others. Government seems to get involved more. The dividends you see on the SET really are estimates. When the company declares its dividend I have never had one come lower then specified.

Hope that helps

For sure 2% doesn't work on SET. The spread between bid and ask can be almost 1% so the probability to be kicked out from the trade before you gain is to high. ATR the best I have found so far and can be adopted in any market. Trading commodities and forex on margin I learned the hard way.

[wordchild]

It will take some time to read through all this thread in detail....but in the meantime do Thai stocks, good stocks with good history return good yields.

I would like to what can be expected from such stocks in both dividends and gains and do they pay out fully franked dividends ?

1) the good news is Thai companies tend to pay out quite a high proportion of net income as dividends +50% is not unusual

2) partly because of this, dividend progression is non existant. if earnings go down expect the dividend to go down by (at least) a similar amount

3)therefore, do not rely on current quoted yields as a guide, they may over (or under)state the likely dividend outcome

4)in effect, dividends (for most Thai stocks) are received net of a 10% withholding tax which, depending on indevidual circumstances, can be either, offset as part of your overall tax calculation in Thailand (if there is a personal benefit) or, not declared at all, as the 10% withholding tax on dividends ,from a SET listed entity, is the maximum payable by any Thai tax payer, whatever their personal rate.

5) For an overseas tax payer the 10% withholding tax can normally be offset against your overall tax liability and ,for certain countries (incl the Uk ) , you also get , as of last year, an additional credit for for the corporation tax already paid by the company. ie the dividend is deemed to be "franked".

Edited July 18, 2011 by wordchild

[ray23]

Good Post

[Dag]

Thanks

[ExpatJ]

Givn the increase in US markets last night (first in 9 days) AND the futures in europe (FTSE is up) AND the possibility of further QE3 type mechanism AND the drop of the last few days and now high potential for buying the dips accross global stock markets- i decided to re enter the SET- just bought KBANK - largest single purchase i have made of any stock anywhere- aim to sell in coming days..

Anyone else jumping back into the SET?

[Lorin]

The day started well with +0.30%, but dropped like a rock in the end to -0.89%. Hopes for tomorrow...

[soi41]

ExpatJ. After seeing Dow falling like a rock tonight, I am afraid you bought a little to early ?? That in combination with tomorrow is Friday, where most daytraders, like myself, clear out before the weekend. But good luck.

[ExpatJ]

ExpatJ. After seeing Dow falling like a rock tonight, I am afraid you bought a little to early ?? That in combination with tomorrow is Friday, where most daytraders, like myself, clear out before the weekend. But good luck.

You are right- i mistimed the market big time! Will sell this morning take a small loss; also sold my indonesia fund this morning (at nice profit). This means i am mostly cashed up. Luckily i also bought a big buy in gold earlier this year so i was hedged for this risk/drop. I am now well placed to get some value buys once this big drop is over and that coupled with my gold should mean i have a fairly good Global Economic Crisis Part II. ......just have to time it right

Edited August 5, 2011 by ExpatJ

[maipasathai]

Givn the increase in US markets last night (first in 9 days) AND the futures in europe (FTSE is up) AND the possibility of further QE3 type mechanism AND the drop of the last few days and now high potential for buying the dips accross global stock markets- i decided to re enter the SET- just bought KBANK - largest single purchase i have made of any stock anywhere- aim to sell in coming days..

Anyone else jumping back into the SET?

Bought KBANK one month ago at 132.50. had both price action and volume so I had to take it. Initial stop at 114 and now at 125 so if it close below 125 any day I drop it the next morning. Foreign money running away from SET at the moment so have to see but my stops are in place so should come out with a profit for the portfolio, I hope...