Random Thoughts: Stuff to read, JAS & BJC

Here’s some things that I’m finally catching up reading after going through all 1Q earnings…

Bill Gross – Investment Outlook June 2016

Anyway, my basic thrust in this Outlook will be to observe that all forms of “carry” in financial markets are  compressed, resulting in artificially high asset prices and a distortion of future risk relative to potential return that an investor must confront.

Source: Janus Capital Group

Memo’s from Howard Marks

For me, the bottom line on economic reality is that, in the short run, governments theoretically have the ability to:

  • accelerate economic activity, bringing forward to today otherwise-future activity,
  • make life better for one group of citizens at the expense of another (e.g., the rich versus the poor), and
  • encourage one form of activity versus others (e.g., investing for capital gains versus investing for dividends).

Source: Oaktree Capital

Mary Meeker Internet Report 2016

Far too many quotes here, but it’s an interesting fact based report on trends from the internet, cars, china etc etc

Source: KPCB

BJC – “We need money asap”

Is this really a shocker? Well here’s the official story, now BJC holds 97.94% in BIGC

Capital restructure plan to finance Bt240bn acquisition costs


– Right offering 1:1 at Bt35 (1600*35=~Bt56bn)
– Private placement 800m shares at no less than Bt35 (>=Bt28bn)
– Bt156bn loans.

EGM is set on 29 June, RO on 23-21 July.

After the capital restructure, net D/E is expected to be 1.3x

Synergy target of Bt1.7bn will be implemented over 3 yrs through 8 key areas.

1. Private labels-production of BIGC private labels, new product developments and raw meterials
2. Logistics(the largest portion of Bt1.7bn synergies)- leverage existing WHs across the group and increase utilization of facilities and transport assets (ex. backhauling)
3. Promote BJC products-exclusive BJC products at BIGC stores
4. IT-leverage BIGC IT knowledge in BJC’s other retail biz
5. Special projects-jointly develop new biz opp ex asia books, pop-up stores/new platform for BJC ventures in BIGC stores
6. Real estate (second biggest portion)-development opportunities within the group to real estate portfolio
7. Retail operation-align trade term, leverage operation synergies across retail formats

JAS – “Under the table?”

So the NBTC levied a fine of “only”  thb 199.42 mn and won’t go after the broadband, TV nor internet licenses under JAS. So that’s it, end of the story, I’m bored of reading about JAS. But am curious to see what else he’s going to try and do.