Exchanges provide windows to economies

Stock market a good choice for long-term investors Stephen Hsu, a native of Taiwan, runs Phnom Penh Securities, one of a dozen underwriters licensed by the SECC to prepare companies for IPOs on the CSX and to engage as an intermediary with the public for trading on the CSX.  Hsu has spent the last 20 years in banking, insurance and securities.  He heads a team of 45 employees, six from Taiwan and 39 Cambodians. • It looks like the choice of Phnom Penh Water Supply Authority (PPWSA) is a good one for the first CSX IPO.  Everybody needs a steady water supply and they seem to have sound management and a good infrastructure.  Do you agree?  Would you recommend investors buy in to PPWSA? PPSWA is a good company and it has stable business performance. We can predict that there will be stable return by dividend or right. For the investor, if you are long-term investor, and want more interest rate than a bank can give, then this would be a good choice. For the short-term investor, state-owned enterprises generally won’t have big price fluctuations. Stocks will follow the trend of the international markets and currently, due to the debt crisis in Europe, the international stock markets won’t have big fluctuation.  We won’t advise our clients to make short-term investments. Moreover, the liquidity risk is part of the equation as well.  We suggest making a conservative amount for subscription. Furthermore, PPSWA transferred 84 per cent of shares to Class A stock, and 16 per cent of shares to common stock in February, 2012. The Class A stock holder can’t vote and also can’t get a dividend. This will lead to an earnings per share (EPS) increase of 6.25 times, but we need to notice that an investor only needs to possess 8 per cent of the original capital, to control the whole company easily. • How about the trading in Riel on the CSX and the ability to settle in USD?  Would you advise your clients just to keep Riel accounts and settle in Riel rather than settling in USD? It seems like there might be too many exchange rate fees. …

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