Stocks in the news (bem, ea, gpsc, nl, psh, threl) 20.02.24
BEM reported 5 tranches of bond total Bt5b sold out, 5.2x times covered, pays 3.07-4.05% p.a., will use proceed to refinance Blue line MRT project.
Comment: Strong players are going to be perfectly fine. Look at that cost of financing, it’s peanuts.
EA expects to wrap up big-lot EV orders by end of 1Q, target >5k commercial EV delivery this year.
Comment: 60…40…next is 20? C’mon its gravity, POS’s all eventually come back down to earth.
GPSC sees 1Q turnaround from higher Ft on electricity sales for period of Jan-Apr, lower gas price yoy, contribution from Xayaburi hydro power plant, upside from investment in Avaada in India, exploring opportunity to enhance value of existing battery & ESS business.
NL: construction contracting services, NL Development, debuts IPO 130m shares at Bt2.6 apiece, CIMB Sec TH leads.
Comment: Beautifully done.
PSH plans 30 new projects worth Bt29b, with a shift to upper-priced segment to balance those in lower-end market affected by negative factors, sets Bt14b capex for 32 plots of lands worth Bt10.5b and Bt3.5b for healthcare business.
THREL: top holder & SABUY’s CEO, Chookiat Rujanapornpajee, cuts holding by 0.6557% to 4.5901% on Jan 22, SEC filing.
Comment: Why isn’t he in cuffs yet? Ah yes because he’s legitimately playing a fool.
peter satrapa-binder
NL: yes, nice pump for the start and although it fell back a little bit until SET closing time i believe the stock is quite reasonably priced now.
Paul A. Renaud
A general comment on Thai stocks: I notice of late ever more of share-buy-backs happening on the SET recently, as I gauge this from casual observation. Thai brokers should point this out, as it likely means some, ever more, companies think their stock prices are much too low now; hence share buy backs. This is well regulated on the SET -and require a SET announcement, whenever a company acted on buying their own shares. Called “Treasury stock”. Have you/anybody here seen any study/published report on this? Share buy-backs can also mean companies’ don’t know what to invest in now, due to Thai econ. lethargy, but often share buy backs are an indication of a Board that they think their stock price is too low.
Pon
Haven’t actively looked for a domestic study on Thai buybacks.
I still find myself conflicted on share buybacks, I understand that there is a lot of literature that prefers buybacks/or it being a better form of capital allocation in the US equity market, but my preference is for the company to pay out a massive dividend (if there is excess cash) and then let me what decide what to do with the excess capital generated from the business to decide if I should reinvest into their shares to go elsewhere.
Paul A. Renaud
News Release from Thaistocks.com:
Due to the continuation of a new discriminatory trend by select listed companies here on issuing new free warrants, while then selectively excluding foreign/expat investors on getting theirs, as per NVDR assurance: even to foreigners residing here. While noting the SET sanctioning this as an acceptable new practice, i.e. stating to me, its “up to the individual company”.
Hence I will no longer, responsibly & professionally favorably write, evaluate and view Thai stock investing here -which I published full time since 1997, but now ended. Moving on. FYI,
Best regards,
Paul A. Renaud. http://www.thaistocks.com
peter satrapa-binder
NL, again: well, after a short pump it fell back below its IPO price. but, unlike for many other recent IPOs their financial #s do look quite ok.
Paul A. Renaud
Yes, Pon, totally agree. My point only was/is that if its true, as I sense, that there are more than usual share buy backs going on now here; it likely signals more than a few companies presently believe their stock prices are undervalued. Hence the buy backs. It so may signal by knowledgeable insiders that the SET broad-selling over so many months is overdone (at least in their companies -and in their views.) In the US this is different, they are buying back for different reasons there, I sense.