No more $ for infrastructure projects

Well it’s done,  at least for now, the Constitution Court has ruled that the government-proposed bill to allow the Finance Ministry to raise THB 2 trn in loans for the infrastructure development projects has been rendered unconstitutional.

The court unanimously agreed with a vote of 8-0 that the content of the bill violated provisions stated in the first paragraph of Section 169 of the charter. It also voted 6-2 that the bill’s legislative procedures went against Section 170 of the constitution.

Source: Bangkok Post

We are still without a functioning government in this country, the BOI still can’t approve any new projects, no $ for farmers, etc etc etc blah blah blah.

So what’s next?

  • The usual, everything is sitting in the court system in regards to:
  • Impeachment of Yingluck re graft related to the rice scheme
  • Ruling upon whether the election is invalid
  • Ruling upon anything against Pheu Thai as the Democrat’s as not allowed to be convicted of anything

I still doubt a coup would happen as that would just bring another big group of protestors to Bangkok => fighting => more rubbish. So lets just wait and see how it all unfolds.

Stocks in the news (cpf, drt, jmart, major, nwr, ptt, siri) 12.03.14

CPF

CPF finds a way to use used vegetable oil to produce Biodiesel B100 in its Saraburi plant. This will help lower its dependence on diesel imports by 1 million liters per year and lower energy costs plus help break the cycle of repeat use frying oil that can cause harm to consumers. (Khao Hoon, 12/03/14)

Comment: Well I suppose this should help to lower its COGS

DRT

DRT expects revenues growth of 10% this year and in the worst cast 5% if politics continues to drag consumer spending. It also plans to expand more into foreign markets in the future. (Khao Hoon, 12/03/14)

Comment: They’ve recently expanded capacity and are having trouble increasing utilisation, DRT was once a small company growing steadily, now it has to compete with SCG…

JMART

JMART expects 1Q14 revenue growth of 10-15% YoY. However, it will revise down this year’s revenue target by no less than 35% to include the political impact. It also has changed and now plans to list subsidiary JAS on the SET instead of mai in 3Q15. (Khao Hoon, 12/03/14)

Comment: Still an attractive story for both investors and punters Continue reading Stocks in the news (cpf, drt, jmart, major, nwr, ptt, siri) 12.03.14

Stocks in the news (aie, bcp, centel, global, mega, uv) 11.03.14

AIE

2014 revenue target at Bt5.5bn. It says that if it has a profit this year, it is ready to pay out dividends. Although the company was affected by the shortage of palm in the first quarter, it expects to see growth driven by better cost control and inventory on hand. (Khao Hoon, 11/03/14)

BCP

BCP seeking new ventures – State-majority-owned refiner, Bangchak Petroleum Plc (BCP) is aggressively looking for new core businesses in addition to oil refinery and retail. Although Bangchak set a milestone of 50% earning before interest tax depreciation and amortization (EBITDA) from new businesses in 2020, mostly in renewable energy ventures, the company has yet to decide the new core stream of revenue. (Bangkok Post, 11/03/14)

Comment: Well as long as they can push investments through then anything is possible

CENTEL

CENTEL aims to set up a REIT worth Bt5bn. Management is confident that it can sell its assets into the fund by the end of this year. It also plans to take over a hotel in England and put 20 more hotels under its management. (Tun Hoon, 11/03/14)

Comment: The hotel management business is what has allowed this company to grow very well over the past few years, however its food business performance is rubbish! Continue reading Stocks in the news (aie, bcp, centel, global, mega, uv) 11.03.14