I've started this thread to exchange ideas on what I believe to be one of the best investment opportunities of our generation. When Thailand devalued its currency in July, 1997, the world financial
crisis began. Now, clear signs of a recovery in Thailand are at hand.
Just as US banks recovered in 1992 and Latin American banks
recovered in 1995, I believe 1999 will mark the recovery of the Thai banking sector. The plays here in US dollar denominated ADRS are Bangkok Bank (symbol: BKKPF), Thai Farmers Bank (symbol: TFBPF) and Siam Commercial Bank (symbol: SMCBF). BKKPF is by far the largest and represents 7% of the total valuation of the Thai stock market. Next in size, and not that much smaller is TFBPF. SMCBF is the 4th largest in Thailand and its largest shareholder is the Thai Royal Family. These stocks are currently trading at $1.20 for BKKPF, $1.00 for TFBPF and $.44 for SMCBF. It is my belief that the upside over the next 2-5 years is 10 to 20 fold. Information on these companies is scant in the US and the volume traded on the ADRS is extremely light. For the longer term investor who is willing to do his own due diligence, I truly believe that the opportunity is tremendous. I will try to post those URL's that I've used to examine this opportunity in upcoming posts. My hope is to start a lively exchange with knowledgeable people for the benefit of us all. |
