Bill Gross Monthly Paper – Negative yields…

Bill Gross’ latest paper is out and as usual there are some great nuggets of information especially in this discussion in regards to negative yields and their impacts on bonds, funds, banks etc etc…here we still wonder aloud, if yields are negative does the good old fashion discount rate still matter?

  • What readers should know is that the global economy has been powered by credit – its expansion in the U.S. alone since the early 1970’s has been 58 fold – that is, we now have $58 trillion of official credit outstanding whereas in 1970 we only had $1 trillion
  • The recent collapse in worldwide bank stock prices can be explained not so much by potential defaults in the energy/commodity complex, as by investor recognition that banks are now not only being more tightly regulated, but that future ROE’s will be much akin to a utility stock.
  • Investment implications? Do not reach for the tantalizing apple of high yield or the low price/ book ratio of bank stocks. Those prices are where they are because of low/negative interest rates.

Source: Janus


Management Trades 29/02 -04/03

Notable Transactions

Buy(s) THB 639 mn

  • BA – And he continues to buy and buy and buy, this time 400 mn worth of shares
  • SAWANG – Just a share swap amongst the family members
  • IFEC – That’s quite an expensive way to support one’s stock price.

Sell(s) THB 3.4 bn

  • WHA – Block sale by the founding couple to Templeton
  • TU – Thats interesting to see continued selling here
  • EA – Same as TU, perhaps after all of these PPA’s under EA there won’t be much future growth?




Stocks in the news (bjc, gunkul, ircp, jwd, ktb, lalin, mono, nok, spali, stec, tacc, trt, true) 07.03.16

Foreign banks help BJC fund US$6.2bn Big C buy – Berli Jucker Plc (BJC) has tapped foreign banks including BNP Paribas as well as domestic lenders to raise US$6.2 billion for its acquisition of Big C Supercenter Plc, putting it on track to successfully meet a March 31 financing deadline. (Bangkok Post, 4/3/16)
Comment: One hopes for BJC that the support is certain otherwise they’ll be out of pocket to the tune of USD 600 mn

GUNKUL approved a par split from Bt1 to Bt0.25 to increase liquidity. It ready to issue a debenture of not over Bt3bn, age not over 7 years to support further expansion. It will offer the debenture to shareholders on April 26. (Thun Hoon, 07/03/16)
Comment: Well if you want to do a stock split now before the SEC implements the 0.50 minimum ruling.

IRCP set up a JV, “Singhacom intergroup”, with Singhacom enterprise to act as a service provider and improve 4G network. It expects to book revenue in 2016 of Bt100mn. (Kao Hoon, 07/03/16

JWD expects to finish M&A deal in ASEAN worth more than Bt3.5bn. It is interested in logistics business. It targets revenue growth of no less than 10%. (Kao Hoon, 07/03/16)

Continue reading Stocks in the news (bjc, gunkul, ircp, jwd, ktb, lalin, mono, nok, spali, stec, tacc, trt, true) 07.03.16