Ever since Bhumjaithai’s leader Anutin begun campaigning, we’ve said two things

1. They’ll be the swing party
2. Thailand will get roads and weed

Why the roads? Easy he’s the owner of STEC Plc, why the weed? Well now I’m going to indulge myself in a mix between rumours, facts and my random thoughts and let you figure out where things go from here for the names mentioned below.

Note: I’ll put an (R) for the rumours and an (F) for the facts, and thanks to KP, KK, & DL for their comments on these companies/industries.

So here we go…

(R) Newin has 100 rai of weed plants growing in Laos

(R) DOD Plc apparently stated that a few months ago during a meeting with analysts/fund managers/investors that they would win a THB 100 mn p.a. contract for CBD Oil later this year and that TIPCO Plc was one of their potential competitors in this industry.

(R/F) In August select hospitals are going to begin offering CBD products

Q. Who the hell is DOD?

(F) DOD Biotech PCL produces dietary supplements. The Company focuses on manufacturing of capsules, tablets, powder drinks, and other supplements. DOD Biotech also engages in research and development of raw materials and ingredients. DOD Biotech serves customers in Thailand.

(F) They recently listed on the SET in 2018 and the share price has been up mainly up since its IPO price of THB 9.30/share

(F) The major shareholder, founder and now (former) CEO of DOD is a K. Supamas Isarabhakdi

Q. But Pon you said she’s the former CEO, why?

(F) Well she stepped down in May 2019, here’s the SET announcement, to join the Bhumjaithai Party as their Spokeswoman, here’s their website and just google her name to find out more.

Q. Is this a POS company?

Well their numbers have looked ok since going public last year.

Q. So why are you talking about this now?

(F) Today in the Bangkok Post, Anutin apparently said this:

Public Health Minister Anutin Charnvirakul said hospitals under his ministry will be allowed to prescribe drugs containing cannabis extract within three weeks.

“While the drugs are in production now, I have asked that laws be amended to accommodate this move. Within 2-3 weeks, hospitals under the ministry will be allowed to prescribe drugs containing cannabis extract. Assuming good results from treatment, the policy on cannabis then will move on to the next step,” he said.

Source: Bangkok Post

Q. So what about TIPCO?

(F) Well TIPCO is a different type of company, it has the shareholding value of TASCO, it’s a fruit juice brand co and manufacturer.

(R) The rumour is that they’ll participate in this bidding as well for CBD Oil manufacturing and that apparently this shall also be decided this month.

(F/And a lot of random thoughts) The numbers, charts, shareholders are below as well.

What I find odd about the two names is that they’re both THB 4-5 bn in market capitalisation despite the completely different types of industries.

Now I’m going to take the blue pill and see how far I go down this rabbit hole, could other drink/drug manufacturers listed participate in this? You’ll think of names such as ICHI, MALEE and SAPPE, will BJC be the main distributor of these products? Or will it be Kerry and then VGI benefits? Plus then VGI can then also benefit from the marketing through the billboards and BTS advertising spots, or will THBEV, listed in Singapore, launch their own brand of products? Perhaps MK Suki will launch their own style of coffee shops with CBD coffee! Forget coffee, energy drinks? Wait that’s OSP! Perhaps MEGA will launch their own version of pharmaceuticals for this? Will the hospitals go through the roof as a result of the medical tourism growing which small name will become the specialist and give us a multi-bagger return? Oh medical tourism? Then AOT, the hotels, the airlines can all grow & re-rate, imagine Thailand becomes re-rated to the levels seen in the CBD players in Canada…Or perhaps I should take a step back, have some of that sweet weed and see what other magical ideas I can come up with….

Q. So should you trade/invest in these names?

I HAVE NO IDEA. These may all only be manufacturing contracts without any brand value and thus only single digit margins, perhaps some government entities will take the majority of the market, there are so many but’s and if’s, but have fun trying to figure it out all out 🙂

Have a good weekend.

Sources:

https://www.set.or.th/set/pdfnews.do?newsId=15579587789970&sequence=2019052315

https://www.bhumjaithai.com/party/candidate?type=partylist

https://www.bangkokpost.com/thailand/general/1722871/first-cannabis-drugs-in-three-weeks