Speculative stocks post Bt2.7 bn in net losses
Ten stocks considered speculative reported combined first-half net losses of Bt2.73 billion, down 6,538 per cent from the first half last year.
The 10 listed stocks are Agripure Holdings, Adkinson Securities, Everland, Power-P, International Engineering, Eastern Wire, Bliss-Tel, BNT Entertainment, Picnic Corp, and Natural Park. All of these companies were once on the Securities and Exchange Commission's (SEC) turnover list, which shows the stocks with the highest weekly trading volume. Brokers will have to report the details of all transactions involving these 10 companies to the SEC. Almost all of the 10 stocks have been suspended from trading by the Stock Exchange of Thailand (SET). International Engineering was recently on the turnover list for a three-week period. According to SET reports, Eastern Wire was the worst performer among its peers in the first half, with a 1,064-per-cent year-on-year slump to a net loss of Bt475.91 million. Picnic's first half also plunged 1,064 per cent to a net loss of Bt982.51 million. Bliss-Tel's results dropped 452 per cent to a net loss of Bt292.48 million. International Engineering fell 351 per cent to a net loss of Bt88.63 million, BNT drooped 321 per cent to lose Bt341.24 million, and Power-P slid 190 per cent to a net loss of Bt20.63 million. Agripure Holdings dipped 125 per cent to a net loss of Bt1.63 million, Natural Park fell 104 per cent to lose Bt459.31 million, Adkinson Securities dropped 55 per cent to a net loss of Bt139.76 million, and Everland was off 46 per cent to Bt139.34 million in net profit. Kosin Sripaiboon, head of research at UOB Kay Hian Securities (Thailand), recommended investors to avoid theses stocks because their fundamentals are weak and the SET might take restrictive action on them. "Investors who really want to snap up these stocks must accept risk and have discipline. If their prices rise to a certain level, they have to lock in profit immediately. Don't wait to sell at a high price as they are at high risk of seeing their prices drop," he said. "Big investors can speculate on these stocks because they dictate these stocks' direction, while small players must buy and sell very rapidly if they deal in these stocks."
Siriporn Chanjindamanee The Nation
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