Market Update 17/02
I can’t think of a better picture for the Thai market at the moment.
At the end of the day, all of these names have fallen or are falling for valid fundamental reasons. CPAXT and CPALL due to the potential investment into Seven & I and the potential stress on their respective balance sheets. OSP – being a mismanaged entity. TOP – The massive capex that’s upcoming, AOT – King power not paying their bills on time, and DELTA for earnings being down -60% YoY.
As the market is working it’s way through earnings season, I’m seeing a few bright lights…let’s see how it unfolds…and the banks…the glorious banks are enjoying this period of Financial Repression to rebuild their equity bases. Just imagine what happens to these share prices should Thailand begin to show loan growth…
Paul Renaud
Great cartoon. It was soo obvious to me long ago, “big bad bear caps” here were way-overvalued, over-hyped, over-punted.
I wrote so at my web site already 2-4 years ago, told MD’s at various Thai brokers how “bad money will chase out good”. How the legitimate investors will leave and in time the traders would get burned and retreat, leaving few to none left. None answered. Now they got “a fine mess”, as Laury and Hardy would say. It’s why I firmly and continuesly viewed only owning very high dividend value stocks here; and “go to the beach” until one day sanity returns.
Pon
Part of me still wants to see genuine pain in the thai economy + markets before committing serious capital in Thailand again.