Friday, March 11, 2005
Thai Capital Fund
Stock Of The Week
Pad Thai Profits
Matthew Schifrin, 03.09.05, 6:00 AM ET
Carlton Delfeld, editor of ChartwellAdvisor.com, an investment advisory devoted to global investing using closed-end funds and exchange-traded funds, is recommending Thai Capital Fund, a closed-end mutual fund that trades on the American Stock Exchange. At a recent price of $10.63, Thai Capital Fund trades at a 7% premium to its net asset value. As of the end of February, the fund's three-year average annualized total return was 38%.
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According to Delfeld, Thailand's stock market, Bangkok SET, is currently trading at only 8 times earnings, compared to 14 times earnings for Malaysia's market, 15 for Singapore, 19 for Philippines and 27 for Japan. After a stellar 2003, the Thai market had a tough year in 2004 and is now trading 15% below its 2004 high.
There are many reasons to be bullish on Thailand's prospects. Delfeld cites potentially stabilizing oil prices, a stronger currency and a backlog of public offerings as signs that overseas investors are returning. He also mentions that the strengthening of Prime Minister Thaksin Shinawatra's ruling party in last month's general election should help the Thai stock market and release large infrastructure projects currently on hold. Thailand has long been one of the world's fastest-growing economies. The Southeast Asian nation has a population of roughly 64 million people, 95% of whom are Buddhists.
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While the Indian Ocean tsunami in December damaged some of Thailand's coastal areas, its economic impact will be muted due to large inflows of capital aid and rebuilding activity. According to its most recent filings, Thai Capital Fund's (amex:TF) portfolio manager, Cholathee Pornrojnangkool, had invested 20% of the fund's assets in the energy sector and 19% in communications. Delfeld says Thai Capital Fund is his top pick for total return in 2005.
For more information and analysis from ChartwellAdvisor.com, click here.
The investment above was recommended in Forbes Newsletters' free Stock of the Week e-mail. To receive Stock of the Week next Monday morning, click here.
Send comments and questions to newsletters@forbes.com.
Pad Thai Profits
Matthew Schifrin, 03.09.05, 6:00 AM ET
Carlton Delfeld, editor of ChartwellAdvisor.com, an investment advisory devoted to global investing using closed-end funds and exchange-traded funds, is recommending Thai Capital Fund, a closed-end mutual fund that trades on the American Stock Exchange. At a recent price of $10.63, Thai Capital Fund trades at a 7% premium to its net asset value. As of the end of February, the fund's three-year average annualized total return was 38%.
Click here for Forbes Wireless Stock Watch's special investment report, "Cashing in on China's Wireless Revolution."
According to Delfeld, Thailand's stock market, Bangkok SET, is currently trading at only 8 times earnings, compared to 14 times earnings for Malaysia's market, 15 for Singapore, 19 for Philippines and 27 for Japan. After a stellar 2003, the Thai market had a tough year in 2004 and is now trading 15% below its 2004 high.
There are many reasons to be bullish on Thailand's prospects. Delfeld cites potentially stabilizing oil prices, a stronger currency and a backlog of public offerings as signs that overseas investors are returning. He also mentions that the strengthening of Prime Minister Thaksin Shinawatra's ruling party in last month's general election should help the Thai stock market and release large infrastructure projects currently on hold. Thailand has long been one of the world's fastest-growing economies. The Southeast Asian nation has a population of roughly 64 million people, 95% of whom are Buddhists.
Special Offer: Double the returns of the average Fidelity mutual fund owner with Jim Lowell's Fidelity Investor advisory service. Currently Jim has more than 40% of his growth model portfolio in Fidelity's international funds. Click here to get his global mutual fund buy list.
While the Indian Ocean tsunami in December damaged some of Thailand's coastal areas, its economic impact will be muted due to large inflows of capital aid and rebuilding activity. According to its most recent filings, Thai Capital Fund's (amex:TF) portfolio manager, Cholathee Pornrojnangkool, had invested 20% of the fund's assets in the energy sector and 19% in communications. Delfeld says Thai Capital Fund is his top pick for total return in 2005.
For more information and analysis from ChartwellAdvisor.com, click here.
The investment above was recommended in Forbes Newsletters' free Stock of the Week e-mail. To receive Stock of the Week next Monday morning, click here.
Send comments and questions to newsletters@forbes.com.
# posted by Tom @ 2:55 PM 
