Chairwoman of the Capital Market Opportunity Center (CMOC) and the Market for Alternative (MAI), Ms. Sopawadee Lertmanaschai, disclosed that the SET is preparing to allocate a 3.55 million baht budget as a second lot of funds to support securities companies interested in and ready to produce quality research reports. This decision came after the success of the first Securities Research Support Project that increased the number of quality securities research available for investors. The project has been successful in promoting research on moderately liquid securities, which tend not to get the coverage they deserve from securities companies.
"Financial support for the first Securities Research Support Project was about 4.95 million baht in total or an average of 50,000 baht per report. Ten securities companies participated in the project by submitting fundamental research on 56 securities. The reports include 50 SET-listed securities from nine industries and six MAI-listed securities. There are a total of 99 reports that can be viewed at www.settrade.com and at the SET Library on the 1st Floor of the SET Building. This greatly helps enhance the number of quality research reports available, helping to equip investors with more information."
"The project benefits investors investing in the SET as well as the MAI. Hence, to increase the number of research on quality securities, the SET will continue supporting the project. There are nine securities companies showing interest in obtaining the funds and have submitted the names of 50 securities that they are interested in researching. The securities companies are expected to submit the reports to the SET by October," Ms. Sopawadee said.
Besides focusing on moderately liquid stocks, the reports should be non-technical and easy to understand. Research reports should include financial modeling with data sources identified, data on stock liquidity, views towards the company's operational performance with clear separation of facts and comments, information on its current status as well as two-year forecasts along with two years of historical data, a strengths and weaknesses analysis, optimum stock valuation, executive interviews on future business, and investment advice.
