Regular features from August 2005 116th Issue

Is it time to go back to Equity Markets?

Many people were badly bruised by the equity bear market that lasted from year 2000 thru 2003.

The general impression out there, perpetrated by the day traders and media like CNBC who focus, as is their business, on the short term, is that the markets are not good and the constant discussion is where to put your money.

At time of writing (beginning of July 2005) both the Dow Jones and the FTSE 100 have been relatively flat for the year.

So people who are probably getting between 2-3% in their banks are comforted by the thought that they are not losing out too much.

After all for those who made a fortune in equity markets in the decade 1990-2000 and were smart enough to get out in time maybe that's a good place to be.

We generally recommend Switzerland as the first domicile for your money. For many reasons not least that this investment escapes all taxes including the new Swiss withholding tax. So today I took a look at how equity markets around the world performed since 2003, when your money is domiciled in Switzerland . Admittedly these are some of the World's best fund managers and merchant bankers but I think you will be surprised by the performance half way through 2005

Equity Funds 2003-2003

Year to date 2004 2003

Merrill Lynch Emerging European Fund +21.19% +28.98% +58.06%

Merrill Lynch Japan Opp.Fund +11.77% +12.2% +39.74%

Fidelity Aggressive European Fund + 18.8% +18.15% +39.78%

J.P.Morgan European Small caps +20.6% +20.04% +36.6%

J.P.Morgan Latin American Equity A +28.9% +1.07% +27.39%

Vontobel Far East Equity Fund +18.39% +18.05% +32.5%

Fidelity Funds America Fund +17% +5.8% +15.7%

Sector Funds

Pictec Biotech +10.03 +4.23% +34.44

Merrill Lynch World Mining +14.02 +1.5 +54.12

Impressive figures no doubt and all those pluses give the lie to the general perception of no performance in Equity markets.

From the United States to Japan to Eastern Europe to the Far East to Latin America there is always opportunity for those who get the right advice and know how to compile offshore funds.

For Thailand expats Switzerland is a particularly attractive base for your wealth and future living standards.

Many expats getting on in life are married to younger women who in the majority of cases will survive them. Many have been married before in Europe or America and have children there. The big benefit of a Swiss investment is that you can make uncomplicated arrangements for your estate on your demise. No probate is required and your inheritors will not be forced to employ an expensive European or American lawyer to decimate your estate with charges.

When you initially arrange your investment you nominate beneficiaries in the event of your death. You can share between your wife and your children from another marriage if you so wish. You are not locked into this arrangement and a simple letter can change the beneficiaries

More importantly while you are strong and living you also escape tax. No tax of any kind is levied on your investment. No capital gains, inheritance or corporation tax and as I have already said this type of investment also escapes the new Swiss withholding tax.

It almost goes without saying that your investment is totally confidential from preying eyes of divorce lawyers and tax authorities. If however you are a drug baron or gun runner Switzerland in 2005 has no hiding place for your loot.

Swiss investments carry a 100% entitlements guarantee making them more secure than any other investment in any other country.

And interestingly your family could not be deprived of your investment in the event of you going bankrupt. If bankruptcy proceedings were instituted against you or if a loss certificate is issued the investment is transferred to the beneficiaries.

So think seriously about your investment future

For more information contact Jerry at

jerry@swissinvestcenter.net

Mag's Page: The UK Perspective

In June I mentioned the popularity of Charity Shops in England , but where shopping for second hand goods is concerned they are only the tip of the iceberg.

Britain has become a nation of Car Booters. Car boot sales became popular in the early ‘90s. Basically they work like this - you load all your unwanted tat into your car and drive several kilometers at some unearthly hour on a Sunday morning to a muddy field in the middle of nowhere.

There you pay several pounds to rent a small piece of the muddy field, where you proceed to set out your goods on a folding table (not provided) and wait for the punters to buy.

Thermos flasks and warm clothing, including fingerless gloves, are essential equipment for these ventures. At the end of the day, which in the world of car booting occurs around lunch time, you tot up your tax free income, re-load the car with unsold items, and return home self-righteously having got rid of some household clutter, then proceed to spend your hard earned cash on a well deserved pub lunch.

However, during my 5 plus years absence from England , car booting somehow became big business. No longer confined to Sunday mornings and muddy fields, it has spawned several TV programmes with inspired titles such as ‘Car Booty' and ‘Flog It'

Every weekday we can tune in to watch as TV celebrities unearth hidden treasures from the public attics and help to sell them.

For the purpose of these programmes the victims always have a goal to raise several hundred pounds for some commendable purpose, such as a flying lesson, aromatherapy course, or Granny's new teeth. Amazingly they often achieve their goal. One family recently raised 1700 pounds (about 119.000 Baht) for a much needed trip to Euro Disney.

Of course it does help that there always seems to be some antique treasure, which is far too good for a mere car boot sale. These items go to specialists for valuation, and are often bought by the specialists, who are no doubt aware that being seen to pay good prices on national TV won't harm their reputations at all.

Us Yorkshire folk have an old saying ‘Where there's muck there's brass. This is still true to some extent, but much of today's ‘car booty' looks remarkably new by my standards. Remember Fred the Flour Grader? Those cute plastic men in bowler hats, which dispensed flour neatly onto your pastry board? Worth a small fortune in the right quarters these days, together with Wade Whimsies - tiny porcelain animals and figures which we bought for about one shilling and six pence in the Fifties.

A Waden Whimsy figure of Big Ears sold at auction this year for over 100 pounds - do the maths yourself!

Non-Brit readers might appreciate a glossary of terms in order to understand this month's page: -

BOOT - the trunk of a car. With the increasing popularity of hatch backs, SUV's and People Carriers the term is rapidly becoming extinct. Not to be confused with Wellington Boot, or anything to do with computers.

TAT - items considered to be unwanted, useless, or out of date. Not to be confused with the Tourism Authority of Thailand.

PUB - Public House. Hostelry. Bar. Watering Hole.

FLOG - to sell. With apologies to any readers expecting to see reality S & M on British TV.

BRASS - money. Derived from the metallic appearance and content of coins. Soon to replaced by the term ‘plastic' in common usage.

BIG EARS - an elderly gnome like character created by the author Enid Blyton. Big Ears and his young friend Noddy rose to fame on British TV in the mid 20th century, at a time when viewers still believed their relationship was innocent.

More on the dubious state of British TV in the coming months. Meanwhile happy rummaging!

Buying Real Estate in Thailand

Thai law requires 7 shareholders in the company with 51% or more remaining in Thai hands. Each of them must legally show the ability to finance their investment. (any investigation showing otherwise could put your asset in danger).

Nearly all companies are set up leaving the majority voting shares with the Thais. As with nearly all-Western legal systems this would be unthinkable. However, there is an option that is fully legal under Thai Law and widely used in the set up of larger companies in Bangkok .

How does it work?

Your company is set up with full legal status and gives you the majority voting rights. You and you alone control the company and therefore your property.

Is it more expensive?

You can open the company for 6,000 Baht plus the standard Government fees for common share company with Thai majority control. Anyway, it you wish to have the company which you can have a majority control, another 19,000 Baht with our lawyer's advice and supervision.

Are there any other fees involved?

You pay a quarterly fee of 5,400 Baht for the administration of your company. Every quarter we will send you a report and keep you informed of any new legal issues that could affect your company.

Does my company require an auditor?

As with any company, an annual audit is required. We issue a full balance sheet and process all taxation and legal requirements on your behalf. The annual audit fee is 9,500 Baht.

Do I need a lawyer to handle the set up of my company?

The bulk of the work is done by paralegals with international experience. An English speaking Lawyer is available should you require further consultation.

What do I do next?

Simply give us a call and make an appointment to discuss your needs.

A cautionary note!

Fact: The extending of a 30-year lease on a property is not supported under Thai Law.

Fact: Foreigners transferring money into Thailand to purchase property are required to show correct supporting bank documents. Without the correct documents you will not be allowed to repatriate the funds should you sell your property.

In any event, we always recommend our clients to seek the professional opinion of a qualified lawyer.

Don't risk it and happy house hunting!

So how can you buy a house and feel totally confident about it? We at CM Law & Accounting Office Company Limited think that all situations have to be viewed individually, but a good solution is to put your assets in a new company and give out different types of shares. It is possible to give out shares in a way that the minority shareholders have more voting rights than the majority. This is not a new law, nor a recent loop hole. No this is a system that is legal and has been used in the Kingdom for decades, but for some reasons it is seldom used for smaller companies and in the province it is virtually unknown.

Mr. Mathee Pinyochotiwong is senior partner in CM Law & Accounting Office Company Limited with branches in Bangkok and associate offices in Oregon , USA , Malaysia . He studied law at the Chulalongkorn University and higher legal training course of Thai Law Society.

CM Law & Accounting Office Company Limited is currently has an office in the Observer 1stopbizcenter.

Hua Hin Dog Rescue Center's Relocation Plans

If you have been following the “trials and tribulations” of Hua Hin Dog Rescue Center in the Observer magazine over the past few months, you will be pleased to know that we now have a wonderful plot of land to move to!

A fantastically kind British couple, Jimmy & Julie McKelvey , read about our problems in the Observer and contacted us to offer us 5 rai of their land at an extremely (ridiculously!) low rent. The land is everything we could have hoped for – large, breezy and far away from people! There is a grassy area for the dogs to play in, plenty of trees for shade & even a small pond for them to lie in or swim in. Doggy paradise! We aim to build 39 pens (a huge improvement on our present 15). These will include 10 isolation pens, 3 puppy pens, and pens for groups of 2, 3 and 4 dogs. We also hope to have a clean clinic for administering medication & doing wound dressings. We cannot begin to express our admiration and gratitude for this wonderful couple's magnificent gesture. From the bottom of our hearts – “Thank you, Jimmy & Julia!” Not only will our present 75 dogs be safe, but also we will have room to take in & help more dogs now.

Fundraising evening – 27 th July 2005

HHDRC now needs to raise the funds to build the new center, so to this end we are currently fundraising frantically. An event that has just taken place – thanks to the generosity of Stella, the owner of Monsoon Restaurant , was a fundraising buffet and auction at Monsoon. Stella donated the venue, food & a welcome drink for each person, so the entire ticket price went directly to HHDRC's moving fund. She also donated three beautiful oriental items for auction. Thank you so much, Stella.

Many items were auctioned, from services to fun “experiences” to items such as home décor. Local restaurants, hotels and many other local businesses generously donated these. Many thanks to all of these kindhearted donors. A complete list of who donated what & how the auction went will be included in the next issue of the Observer magazine .

For anyone who would like to help our relocation in any way, please call Dawn on 01 9814406 or Maureen on 01 8534586, or email us at info@dogrescuecenter.org We desperately need money, building materials (such as cement, chicken wire, wood, gates, doors, roofing tiles etc), labour and many other things. If you are able to help, please, please get in touch Thanks so much for your support.

In The Can

This month I am once again focusing on the movies, but with a slight twist. Obviously one of the key factors in any movie is the original story, which then gets turned into a screenplay – whether it is a factual or fictional story, someone still has to write it. There is one man who currently stands head and shoulders above all others when it comes to having his stories turned into films, and he is also the most successful American writer in history. His stories cover a wide range of styles, but the bulk of his work is revealed by his commonly used nickname – ‘The King Of Horror'.

Stephen Edwin King was born on September 21, 1947 at the Maine General Hospital in Portland , Maine . He began his writing career in January of 1959, when he and his older brother David decided to publish their own local town newspaper named "Dave's Rag". David bought a mimeograph, and they created a paper that sold for five cents an issue. In 1963, in collaboration with his school chum Chris Chesley, they published a collection of 18 short stories called People, Places, and Things-Volume I. King's stories included "Hotel at the End of the Road", "I've Got to Get Away!", "The Dimension Warp", "The Thing at the Bottom of the Well", "The Stranger", "I'm Falling", "The Cursed Expedition", and "The Other Side of the Fog." A year later, King's amateur press Triad and Gaslight Books published a two-part book titled "The Star Invaders".

He made the first sale of one of his stories, ‘The Glass Floor', in June 1970, and he supplemented his wages at a local petrol station, and later as a teacher by selling short stories to men's magazines. He got married on January 2 nd 1971 to Tabitha Jane Spruce, and it was her intervention that led to his first major book deal; King had got frustrated with a story he was writing about a young woman named Carietta White, and threw the few pages he had written in the bin. Tabitha retrieved them and encouraged her husband to keep at it; in January 1973 Doubleday bought the completed book ‘Carrie', signed a contract with King, and in the May of that year sold the paperback rights to New American Library for $400,000. Based on the book contract, Stephen King would get half of that. King quit his teaching job to pursue writing full time. And the rest, as they say, is history.

‘Carrie' was turned into a movie starring Sissy Spacek and released in 1976, and was the first of many. King became a prolific writer of both novels and short stories, most of them with a macabre undercurrent, and many based in his home state of Maine . He also has many of his lead characters as male writers, sticking to the tried and tested method of writing about what you know. It is possible that the often strange and disturbing plots had their seed sown when he was a young boy living with his family. The Kings were the typical family until one night when his father, Donald King, said he was stepping out for cigarettes and was never heard from again. Ruth took over raising the family with help from relatives. They travelled throughout many states over several years finally moving back to Durham , Maine in 1958. Whatever the cause of his vivid imagination, it has resulted in some fine stories, and more relevantly to this column, some great movies.

The next big screen version of one was in 1980, the scary ‘The Shining', with an electric performance from Jack Nicholson. King has had over 70 of his stories turned into movies and TV series, and you'll be glad to know that I am not going to list them all here! However there are several highlights that are worth mentioning and many to be recommended to those who have not seen them. Many will be surprised to learn of King's involvement in some of them, as they are not all in the ‘horror' genre. One which was is ‘Christine' released in 1983, about a car that possesses it's owners (sound familiar ladies?) and if anyone comes between the car and it's owner revenge is swift and murderous. The creepy ‘Children Of The Corn' (1984) is set in a farming town where all those of age18 and over have been slain by the children, brainwashed by a devilish teenage boy and apparently controlled by ‘He Who Walks Behind The Rows'.

‘Firestarter', also released in 1984, is about a couple who participated in a potent medical experiment which gives them telekinetic ability, and then have a child who is pyrokinetic, or in other words can start fires at will. It starred a young Drew Barrymore, following up her appearance in ‘E.T – The Extra Terrestrial'. It also features a stunning soundtrack composed and played by Tangerine Dream. ‘Stand By Me' in 1986 is one which may surprise those who have seen it, as it is not a horror movie, although it has a slightly dark undercurrent. It is based on a short story by King called ‘The Body', but despite the macabre sounding title it tells the tale of Gordie Lachance, a writer who looks back on his preteen days when he and three close friends went on their own adventure to find the body of a kid their age who had gone missing and presumed dead. The stakes are upped when the bad kids in town are closely tailing - and it becomes a race to see who'll be able to recover the body first. In essence it is a boys bonding movie however.

‘The Running Man' in 1987 starred Arnold Schwarzenegger, which is set in a future totalitarian society where he plays a cop framed for the massacre of 100 people. He escapes from prison but is recaptured and then forced to participate in a grim game show, The Running Man, wherein convicted felons are given the chance to run to freedom but have to elude the stalkers; men who hunt them down and kill them in gruesome manners. The novel was written under one of King's pseudonym's, Richard Bachman, under which he has written another 6 books. The name was apparently created by King when reading a novel by Donald E. Westlake, whose pseudonym is Richard Stark, while listening to Bachman-Turner-Overdrive. The surname Stark is also that of the lead character in ‘The Dark Half', also made into a movie in 1993. Before that though in 1990 was one of the most successful adaptations of a King novel. ‘Misery' starred Kathy Bates and James Caan, and Bates won an Oscar for her role as Annie Wilkes, who rescues Caan, playing writer Paul Sheldon, after a car crash in the middle of nowhere leaves him unable to walk. It turns out that Wilkes is a totally obsessed fan of Sheldon's romantic novels, and becomes crazed by the knowledge that he is not going to write them anymore. Marvellous performances by both in a very dark story.

‘Needful Things' (1993) is worth a mention less for the movie adaptation than for reading the book – it's a neat story and although the acting is good the screenplay doesn't do the original book justice. A quick plot summary to whet your appetite is that Leland Gaunt comes to Sheriff Alan Pangborn's pleasant little New England town, and opens a store. What this kindly Satan sells is whatever you need, from a surcease from pain to an object which you have always coveted. The Faustian price is, of course, corruption, and soon the poor sheriff's town is wracked by jealousy, spite, and violence. One of my favourite ever films, let alone an adaptation of a King story quickly followed in 1994, and was another based on a short story. Again this will be a surprise to many, as the film in question is ‘The Shawshank Redemption', featuring superb performances by Tim Robbins and Morgan Freeman and a fine supporting cast. If you only watch one of the films listed in this article, I urge you to watch this one. Robbins plays Andy Dufresne, a young and successful banker whose life changes drastically when he is wrongly convicted and sentenced to life imprisonment in Shawshank Prison for the murder of his wife and her lover. Set in the 1940's, the film shows how Andy, with the help of his friend Red (Freeman), the prison entrepreneur, turns out to be a most unconventional prisoner. Essentially the story celebrates the spirit of hope even in the most desperate of circumstances, and the movie pulls no punches about the harsh realities of life in prison at that time.

1995 saw the release of another film starring Kathy Bates, and she once again turns in a great performance in another surprising King story, ‘Dolores Claiborne'. Dolores Claiborne (Bates) works as a maid for a wealthy woman in remote Maine . When she is indicted for the elderly woman's murder, Dolores' daughter Selena (played by Jennifer Jason Leigh) returns from New York , where she has become a big-shot reporter. In the course of working out the details of what has happened, as well as some shady questions from the past and Selina's troubled childhood, many difficult truths are revealed about their family's domestic strife. This is cleverly portrayed with present reality shot in cool blue tones blending seamlessly into flashbacks shot in vivid colour. As small town justice relentlessly grinds forward in the shape of Detective John Mackey (Christopher Plummer), surprises lie in store for the viewers. Following this movie a flurry of TV specials based on his work surfaced, only notably broken by ‘Apt Pupil' in 1998, starring Ian McKellen, although there were some sequels such as ‘Children Of The Corn III' and ‘Sometimes They Come Back…Again'.

It was in 1999 that another critically acclaimed adaptation of a King novel was released, and this one will be known by many readers. ‘The Green Mile' starred Tom Hanks, with a great supporting cast, in particular David Morse, and a stunning performance by Michael Clarke Duncan. For those who haven't seen the movie, Hanks plays Paul Edgecomb who is a slightly cynical veteran prison guard on Death row in the 1930's. His faith, and sanity, deteriorate by watching men live and die, Edgecomb is about to have a complete turn around in attitude. Enter John Coffey ( Duncan ); He's eight feet tall. He has hands the size of waffle irons. He's been accused of the murder of two children... and he's afraid to sleep in a cell without a night-light. And Edgecomb, as well as the other prison guards – Brutus (Morse), a sympathetic guard, and Percy (Doug Hutchison), a stuck up, perverse, and violent person, are in for a strange experience that involves intelligent mice, brutal executions, and the revelation about Coffey's innocence and his true identity. As with many of King's stories it takes you through a variety of emotions, and the movie is an excellent adaptation.

Despite the critical and commercial success of ‘The Green Mile', King would remember 1999 for very different reasons. In the June of that year King was accidentally hit in the back by a minivan while walking on Route 5 near North Lovell, Maine . King was found lying in a depression about 14 feet off the road and appeared to have been thrown by the collision. King was severely injured in the accident that left him in critical condition with injuries to his lung, broken ribs, a broken leg and a severely fractured hip. Newspapers reported that he bought the van that hit him and that he planned to hammer it to pieces on the anniversary of the accident!

Since ‘The Green Mile' there have been numerous other adaptations of his work, but none have had the same commercial success. However two of them are also worth investigating; ‘Hearts In Atlantis' (2001) starred Anthony Hopkins and David Morse, and is a gentle, innocent film about the reflections of an aging man, Bobby Garfield (Morse), who returns to his hometown after the death of his best friend. Memories of life at age 11 flood back, as it was a magical time that changed his life. Three 11 year old children Bobby, Carol, and Sully share their lives. Carol & Bobby have a special affection for one another including sharing a kiss "by which all others will be measured". Bobby lives with his mother (Hope Davis), a bitter, vain woman who looks for pleasures for herself without sharing much with her son. Into their lives comes a mysterious new boarder (Anthony Hopkins), who befriends the boy but generates distrust from the mother. As time passes, the man and boy share confidences and special powers are revealed. The other is ‘Dreamcatcher' (2003), a sci-fi cum horror movie, which tells the story of four young friends who perform a heroic act - and are changed forever by the uncanny powers they gain in return. Years later, on a hunting trip in the Maine woods, they are overtaken by a blizzard, a vicious storm in which something much more ominous moves. Challenged to stop an alien force, the friends must first prevent the slaughter of innocent civilians by a military vigilante, and then overcome a threat to the bond between them. In the end, they confront an unparalleled horror, with the fate of the world in the balance.

If the name Stephen King previously brought shivers down your spine, it is not surprising because he truly is a master in the horror genre; however his talents extend far beyond this, and I hope this article will encourage you to investigate both his writing and movie adaptations of his work – you may well have never known it was King's imagination at work in many movies you have seen and enjoyed. I apologise to any Stephen king fans out there if I have not included any of your personal favourites – he has such a huge output it is just not possible. If you want to look out for any of his forthcoming projects it is likely that the next one is an HBO mini series based on his ongoing project ‘The Dark Tower', likely to be called ‘The Talisman' – this is a complete departure from his normal work as it is more of a fantasy epic along the lines of ‘Lord Of The Rings'. However I must finish this article by saying once more – if you haven't already seen it, watch ‘The Shawshank Redemption' when you get the chance.

He's just a scooter boy! Happy Birthday to the ‘old git' Dave - maybe someone gave him a helmet?

Ken celebrating his birthday with John at Crawfords in Cha Am, both looking pleased with their consumption of Guinness!

Useful Telephone Numbers for Hua Hin

Railway station
032-512 770, 032-511 073

Bus station of Hua Hin
032-511 654, 032-512 543

Bus station of Prachuabkirikhan
032-601 901

Bus station of Pranburi
032-621 443

Hua Hin Hospital
032-520 401

Dog Rescue Center
0-1981 4406

Wild life Rescue Center (Tayang)
032-458 135

Department of Land Cha-am office:
032- 430 846-7

Department of Land Hua Hin office:
032-536 164, 032-512 407

Department of Land Prachuabkirikhan:
032-611 211

Department of Land Pranburi
032-622 199

Local Government (Hua Hin)
032-521 340, 532 471

Local water supply
032-511 677

The Power Board of Hua Hin
032-512 215, 032 513 165

Observer office:
032-531 078

Red Cross.
032-512 567

San Paolo Hospital
032-532 576-85

Polyclinic International
032-516 424, 032-516 425

Shell Cooking Gas
032-511 144, 032- 515 620

The Communication Authority of Thailand
(Hua Hin)
032-511 351

Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza

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