The market is “only” down -8% this year.

I’m still going to beat the drum that its the large players and commodities that will drive the market for the coming 6-12 months.

Have had some people mention to me that some domestic consumer players are rocking and rolling due to the lack of international competition.

  1. Hi Khun Pon, you referred to the KEX IPO. I am fasinated at the divergent opinions being ut out by the pro’s. BP quotes MD, investment banking department at Maybank, joint lead underwriter for the IPO, said he is confident in KEX’s IPO as the investment is backed by the company’s leading market position, its solid business model and structural growth prospects.KEX has already received strong support from institutional investors, with the cornerstone tranche being oversubscribed ten times over the number of shares available in the cornerstone placing portion, said Ms Veena. On the other hand, my broker (same Co.) says it’s way overvalued, and not to day trade it; it having issued a trillion shares at 50 satang; of which 350 MMshares not subject to a lockup period. He also mentioned the par value of 50 satang. I can’t see that is relevant. Any thoughts, other than to buy a flag pole?

    • Decent co.
      Not a cheap price/valuation
      It’s the only play on the Thai equity market – so it will do well (should there not be an external event impacting markets)
      Real business wise, Flash and J&T are going to overtake them in volume and through price cutting by next year, KEX is going to have to figure out how to maintain its dominance in the mid-high goods transported category.
      One question on mind, when I see IVL issuing debt at 2.5%, what’s the cost of capital today? If this is the cost of capital, it makes sense that markets are at 20x PE or more…

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.