Stocks in the news (ajd, anan, auct, cpf, epg, jas, pf, salee, tuf, true) 02.03.15
AJD
AJD announced a par reduction to Bt0.01 from Bt0.10 to enhance the stock’s liquidity. It plans to list subsidiary, Happy Vision on mai next year. It targets doubling revenue this year after entering the entertainment business and expects to sell 4mn set-top boxes this year. (KrungthepThurakij, 2/3/15)
Comment: Stock split!
ANAN
ANAN to go ahead with its 5-year business plan, focusing on property development near MRT and expanding its product line to cover all segments, which is expected to lift revenue above Bt50bn. For this year, it targets being No.1 in the condominium market with sale of more than 1.65 units per year. (Thai Post, 2/3/15)
Comment: Still love the long term outlook for this business.
AUCT
AUCT appointed to arrange auction of 232 luxury cars for the Customs Department. This is expected to generate Bt300mn for the government. (Kao Hoon, 2/3/15)
Comment: And maybe about 230,000 baht for AUCT, remember they only take a fee for each transaction, they don’t risk taking on inventory.
CPF
CPF board approves spending Bt2.85bn to increase holding in C.P. Cambodia Co Ltd to 100% from 25%. (Thai Post, 28/2/15)
Comment: Left pocket right pocket.
EPG
EPG’s 3QFY14 net profit rose 27% YoY to Bt147mn, as a result of easing cost of funds and income tax. The company plans to have subsidiary Aeroklas to take over TJM to penetrate the Australia market. (Kao Hoon, 2/3/15)
Comment: I’m curious to learn more about this business.
JAS
JAS announces extra dividend for 2014 of Bt1.65/share, equivalent to dividend yield of 18.6%. (Kao Hoon, 2/3/15)
Comment: And yet the stock price refuses to climb, no believers in the long term future of JAS?
PF
PF’s board approves capital increase of 1,927mn shares allocated to existing shareholders to finance the acquisition of TPROP and GRAND, which is expected to bring its revenue to Bt30bn by 2017. The company plans to open 24 new projects valued at Bt29.5bn and expects its revenue to reach Bt20bn this year. (Kao Hoon, 2/3/15)
Comment: I have my doubts on their ability to raise capital necessary to complete this project, but hey if the market believes it shouldn’t we all?
SALEE
SALEE’s board approves par reduction to Bt0.25/share from Bt1/share and dividend of Bt0.35/share. The company expects revenue to grow 20% this year and expects to sustain its gross margin at no lower than 30%. (KrungthepThurakij, 28/2/15)
Comment: Another stock split! People are going
TUF
TUF board approves raising capital by Bt13.2bn to finance the acquisition of Bumble Bee Foods. (Krungthep Thurakij, 28/2/15)
Comment: A surprise too many, they have the balance sheet strength to fully debt fund this but refuse to, so should we look back and assume that the acquisition announcement followed by the par split were just ploys to increase the share price to raise this capital?
TRUE
TRUE board approves wiping out retained loss by using legal reserve, premium on shares and a par reduction to Bt4 from Bt10. (Post Today, 2/3/15)
Comment: And another stock split! That’s 3 just today! Don’t financial advisor’s have more intelligent ways to to advise companies?
Jay
JAS has a long-term future? News to me! 1.50 baht/share dividend from the infrastructure fund and an additional 0.15 baht/share dividend from net profit? Each move by management seems increasingly desperate.
Pon
Hahaha, fully agree, i’m fairly certain he subscribed to 1/3 of the JASIF shares (through MS) and he needs the $ back!
Bo Stenberg
Devil’s advocate: with TRUE, you get a meaningless stock split in hopes of further immersion in the casino crowd, huge volume, run-up, cash-out. JAS you get Cash in hopes of proving financial manhood relative to loss-making, debt-ridden TRUE, scion of tumbling CPF. These guys play rough.
Jay
TRUE has overtaken DTAC to become number two in postpaid subscribers, and considering how well their TV and home Internet segments performed, there IS a future to talk about.
DTAC itself is getting awfully close to JAS territory, I just don’t see a way for them to recover, hopefully the new CEO comes up with some magic.
INTUCH back to under 80 baht/share, complete no-brainer purchase since there’s literally only 4 investment stocks with 8% dividend or more available as of today.
Bo Stenberg
With respect, Jay. INTUCH may be, as it were, tainted. Hint hint, nudge nudge. These are not the people in favor at the present time.
I’d be up to my neck in it–if it weren’t for the political factor.
Pon
My 2 cents:
True is still a POS, they continue to lose $ on their TV And home internet business, but I can understand the recent increase in stock price as a result of the recap, over the next few years I wouldn’t be surprised to see the stock price decline back to single digits.
DTAC – It’s the dividend dream that is keeping the company alive
INTUCH – It’s singaporean, not thaksin. A good dividend yield w/o a doubt.
Jay
Bo, surely you mean STEC, SC or WIN? 🙂
INTUCH is top of the NVDR net buy lists for the year at 4.4bn baht.
Xavi
I certainly think True are on the improve but the price just does not justify its future profitability potential. I cashed out at just close to 10 baht so kicking myself, but I just didn’t fathom it was gonna run up to close to 15. Thai investors just love to speculate on a feel good story.