Stocks in the news (amata, delta, ea, global, kmc, lh, noble) 09/10/13


Flood hits Amata Nakorn- More than 700 factories in the Amata Nakorn Industrial Estate in Chonburi have been cautioned to monitor the floods closely, as they may face a repeat of the 2011 deluge. Viboon Kromadit, the estate’s chief of operations, said evacuation should be prepared and drilled even though the water has yet to affect their operations. Yesterday he said the estate has seen minor flooding in phases 7-9 where 200 factories are located. (Bangkok Post, 09/10/13)

Comment: We don’t think the floods will actually reach Chonburi area, if it does then Amata’s price drops and simply pick up the shares again, just like 4Q11


Close to sealing a deal in Europe — DELTA is close to closing a deal to invest €12mn in Germany by the end of this year. It is looking to acquire one more business this year. It expects this year’s net profit to reach a high not seen for five years with 10% sales growth. (Khao Hoon, 09/10/13)

Comment: Now this is interesting news 


3Q13 profit over Bt24mn— EA said 3Q13 profit exceeded Bt24mn, jumping 342% YoY, with 9M13 profit of Bt167mn, already higher than the full year 2012 profits. Its 90MW project will start up in December and revenues will begin in 4Q13. (Khao Hoon, 09/10/13)

Comment: Again, valuations, just don’t make sense here

Continue reading Stocks in the news (amata, delta, ea, global, kmc, lh, noble) 09/10/13

Random Thoughts: And we complain about Thai politics

The US government, the bastion of democracy, is still in the midst of a government shutdown, and the debt ceiling deadline is approaching. From what I’ve read the last time the US defaulted on payment was in the early 1800’s, we don’t expect the US government to actually be this silly, but market commentors are now suggesting that perhaps markets need to crash in order to convince these politicians to get their acts together.
Yellen is finally confirmed as Fed Chairwoman, now officially the most powerful in the world, much to the chagrin of my male colleagues, I do like to argue that if we had more women in charge, less things would go wrong. Impact to the markets? Well we’d like to argue its been priced in but wouldn’t be surprised to see markets have a short lived rally.
Thai markets have been buoyant for the past week, our eyes look at the fact that its mainly been prop desks that have been doing the buying, makes us worried that these are all just short term mini rallies.
Amata has come out saying that their industrial estate in Chonburi may be flooded…we don’t expect it but seriously for Thailand to experience another such serious flood would be a blow to investments in this country.
Enjoy the day :)