Thai Stocks For Mid To Long Term Investors

[jaysg]

Let's see where we are after the Greek elections. I may start to be a little more interested in individual Thai stocks.

Quite like the look of Sansiri property (SIRI) - nice dividend yield - just under 7%, undemanding P/E and P/B.

http://www.set.or.th...e=en&country=US

Meanwhile I've been happy with the options trades I've built up for June settlement, which will nicely cover the Greek June elections. Only small, and not the way I originally intended, but I've been writing puts to generate a small income, and then buying puts as the markets market move to hedge/close out. This has allowed me to build up some protection over a risky period, with the put options bought being funding by put options sold, and profits realised.

I now have a nice little portfolio of options that will be profitable at any price for SET50 above 680 (or about 13% below today's levels), with the largest pay-offs to me if SET50 goes down to 710-720 range. If it falls below 670 I start to lose money though, but I figured that's worth the risk.

Of course I'm still mainly long via unit trusts/mutual funds...

Interesting pick with Sansiri - good brand and as u said good dividend, and good P/E and P/B. I dont know much about it in detail, but one problem that i know is the large debt ratio - but at least theyre making profit unlike True

High debt is not necessary an evil. As long as the company is able to maintain commitment from its financiers on the debt financings, it is doing good.

Or exceptionally good, as the return on equity will be high as they runs on borrowed funds to generate wealth to shareholders.

[elektrified]

CPALL is quite a good growth stock according to my criteria.

Just curious what the members think of CPALL at current levels. I was going to buy some but the chart is really scary. Would any of you buy now or wait for a correction and buy in the 28-30 level?

[yoshiwara]

CPALL is quite a good growth stock according to my criteria.

Just curious what the members think of CPALL at current levels. I was going to buy some but the chart is really scary. Would any of you buy now or wait for a correction and buy in the 28-30 level?

For a mid to long-term investment one has to believe in the product IMHO. CPALL is fundamentally about the 7-11 convenience stores. At ground level the growth of the company has been about the opening of new stores and increased national penetration. As I see it at street level the momentum of store openings looks more and more like new stores opening closer and closer to pre-existing stores so one wonder whether sales are being cannibalized. If national penetration has more or less maxed out, then the company is less of a growth stock opportunity.

I only believe it is appropriate to buy on a dip if you believe in the underlying product because if the price undershoots (ie you have caught a falling knife), then you will be in trouble if it was just a 'value' play. So, would I buy? No.

[happyAA]

Hi everyone, had a look at the discussion. Has anyone looked at www thaistocks com ? We have been members for several years and he mainly looks at smaller value stocks, which are less risky than large stocks in Thailand . The membership fees are admittedly quite steep. We think its reasonable value for what you get out of the site. It's a lot of work by oneself.

Presently Thai market has had a good run, and some shares have gone up a lot. I still think they will drop if Europe/USA falls in a heap. We are hoping to hide out in stocks like DEMCO, which has recently had a big run up, so not as good buying right now. Long term, looks OK.

[kblaze]

Website is terrible, he needs an editor badly. With the abundance of free information on the web (kim eng, settrade, market snapshots in the newspapers) that 630 euro price tag for a membership to his letters could be a bit steep for many.

But he does claim 34% return in the past 9 years, so who knows.

[ExpatJ]

Hi everyone, had a look at the discussion. Has anyone looked at www thaistocks com ? We have been members for several years and he mainly looks at smaller value stocks, which are less risky than large stocks in Thailand . The membership fees are admittedly quite steep. We think its reasonable value for what you get out of the site. It's a lot of work by oneself.

Presently Thai market has had a good run, and some shares have gone up a lot. I still think they will drop if Europe/USA falls in a heap. We are hoping to hide out in stocks like DEMCO, which has recently had a big run up, so not as good buying right now. Long term, looks OK.

After contacting him and exchanging some emails I made an easy decision not to buy into his service as i was not impressed. But he certainly seems to know alot about small caps, more than others i know. But the problem with these small caps is that they have tiny volume- basically if you are looking to invest anything more than a few 100s$ its tricky to get enough sellers/buyers on any given day.

I would also argue that these low volume small caps are far MORE risky than the blue chip big growth thai stocks like KBANK, ADVANC etc.

Edited September 7, 2012 by ExpatJ

[ExpatJ]

Website is terrible, he needs an editor badly. With the abundance of free information on the web (kim eng, settrade, market snapshots in the newspapers) that 630 euro price tag for a membership to his letters could be a bit steep for many.

But he does claim 34% return in the past 9 years, so who knows.

The SET index as a whole increased 300% in the last 9 years, so that 34% return is relative...

[kblaze]

Website is terrible, he needs an editor badly. With the abundance of free information on the web (kim eng, settrade, market snapshots in the newspapers) that 630 euro price tag for a membership to his letters could be a bit steep for many.

But he does claim 34% return in the past 9 years, so who knows.

The SET index as a whole increased 300% in the last 9 years, so that 34% return is relative...

Yeah I think it was 34% per year. but still relative to the type of investment. I was just turned off by the presentation of the website...

[fletchsmile]

Hi everyone, had a look at the discussion. Has anyone looked at www thaistocks com ? We have been members for several years and he mainly looks at smaller value stocks, which are less risky than large stocks in Thailand . The membership fees are admittedly quite steep. We think its reasonable value for what you get out of the site. It's a lot of work by oneself.

Presently Thai market has had a good run, and some shares have gone up a lot. I still think they will drop if Europe/USA falls in a heap. We are hoping to hide out in stocks like DEMCO, which has recently had a big run up, so not as good buying right now. Long term, looks OK.

After contacting him and exchanging some emails I made an easy decision not to buy into his service as i was not impressed. But he certainly seems to know alot about small caps, more than others i know. But the problem with these small caps is that they have tiny volume- basically if you are looking to invest anything more than a few 100s$ its tricky to get enough sellers/buyers on any given day.

I would also argue that these low volume small caps are far MORE risky than the blue chip big growth thai stocks like KBANK, ADVANC etc.

Yes would agree, anyone claiming smaller caps are less risky has some serious explaining to do, and would put me off the services of someone that claims that. If you measured risk as related to volatility of returns, small stocks are usually more risky than large caps if comparing the segments in isolation. The lack of liquidity in smaller stocks and micro stocks aslo adds to the risk