SHARE PUNT OF THE WEEK: Myanmar Strategic Holdings develops and manages businesses in Myanmar
WHO IS IT? Myanmar Strategic Holdings (MSH) develops and manages consumer businesses in Myanmar.
It mostly invests in hotels and other tourism companies, education businesses and more recently security firms in the Asian country.
WHAT’S THE LATEST? Yesterday MSH announced it would partner with the MCTA:RVi Academy Mandalay, an international school in Myanmar, to provide English language training on the firm’s campus.
MSH has had a partnership with English language provider Wall Street English since 2016.
WHO BACKS IT? Co-founder and chief executive Enrico Cesenni is the largest shareholder.
Former private equity partner Paolo Pome is also a top ten shareholder, as are MSH’s partners U Aung Myo Thein and ex-fund manager Jonathan Kolb.
WHY YOU SHOULD INVEST U Thura Ko Ko, a Myanmar national who has worked for private equity giant TPG Capital and Goldman Sachs, says MSH allows investors to get involved in ‘high growth sectors which are addressing the primary needs of a fast growing economy’.
He said the bosses are experienced and the company’s approach is ‘asset-light’, meaning it doesn’t own too many large physical items such as land and property which could lessen in value.
…AND WHY YOU SHOULDN’T Ko, who runs YGA Capital, warned that MSH’s shares are not easy to buy and sell due to the firm’s small size and because few investors are aware of it.
This could mean investors get stuck if they want to sell their shares but no one else is willing to buy. Hargreaves Lansdown’s Laith Khalaf said frontier market stocks are very high risk.