Economics: Want to make an “Investment Play” on the Thai-Cambodian conflict? Try Hong Kong listed Cambodian “Casino”

Blog Note: Crisis often comes with opportunity. In fact, some of the globe’s most successful businesses and investors-got their start in the worse of times-like the Great Depression.

If Thai Intel reader think they have “Cutting Edge” political and national security analysis skill-here is how to put it to work: “Try thinking about investing in Cambodia’s Hong Kong listed casino.”

The Thai Cambodian conflict have seen Thai gambler, switching away from Cambodia casino on the border with Thailand to Laos and Burma-hurting Cambodia’s casino business. But how long will the conflict last?

Internally, Cambodia’s economy is booming-bringing in many expatriates. And global tourist continues to flood Cambodia. The conflict with Thailand is also turning Cambodia to Vietnam. In fact, air traffic between Thailand and Cambodia’s major torist destination have fallen to about “Zero” for a long time now, as international travelers heading to Cambodia have shifted to getting to Cambodia through Vietnam.

The Following is from Seeking Alpha by:

Here’s something interesting:

Every so often, Cambodia comes up as a new investment destination. I believe I’ve heard Mark Mobius talk about the country in past interviews. There is a Cambodian company listed in Hong Kong that traded on the U.S. pinks as recently as this week. The company is Nagacorp (the pinksheet designator is NGCRF), which operates hotels and casinos in Cambodia.

Its CEO was interviewed on CNBC Asia earlier in the week. Apparently this is a booming business in Cambodia and is a very large company there. The stock has been trading in Hong Kong with ticker 3918 for almost five years, and aside from participating in the global decline that started in 2008, the stock has not been that volatile (to be clear, I’m not saying this has been like a t-bill ETF); the PE ratio is around 10, and based on last year’s dividends, the stock yields 5% — but the dividend history is lumpy (consistently paid, but in lumpy amounts).

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