Stock exchange warns investors: Tread carefully on OTO shares
Following irregular trading of One to One Contacts Plc (OTO) shares, the Stock Exchange of Thailand (SET) issued a warning for investors to be cautious and examine information thoroughly. OTO, which offers outsourced contact centre services to government agencies and corporations, faced a spike in trading volume, mainly concentrated among a few investors.
Previously placed under the Level 1 trading regulations on June 6 by SET, OTO’s share movement witnessed a decline before the recent upswing on June 12-13. The exchange subsequently issued a statement advising investors to think carefully before trading in OTO stocks.
The SET also requested brokers and relevant authorities dealing with OTO securities to supervise trades and prevent any potentially inappropriate trading orders, in accordance with the Securities and Exchange Act. OTO clarified in a filing to the SET that the stock price fluctuations do not impact the company’s operations.
In a week, the stock price of OTO has reduced by 54.3%, according to SET. Kanawuthi Wattanadhirach, chairman of OTO’s executive committee and CEO, said in a filing…
“If there are any developments that affect any of the company’s important business operations, we will notify investors and adhere to relevant regulations.”
Furthermore, OTO announced Kanawuthi’s resignation, effective from July 1, with Bandit Sapianchai, the present deputy chairman, taking over. Bandit mentioned that OTO had inked a cooperation agreement with Wave BCG, a Wave Exponential subsidiary involved in the clean energy business, providing a full range of carbon credit trading services.
With an interest in adopting technologies to combat climate change, OTO is looking to expand its venture into carbon credit and renewable energy businesses. Bandit also highlighted the company’s plan to grow investments in renewable energy power projects to generate recurring income, which will support its operating performance in 2023, reported Bangkok Post.
Kitpon Praipaisarnkit, vice-president of UOB Kay Hian Securities (Thailand), warned that investors are usually sensitive to sudden changes in company management, often assuming trouble based on their experience with other firms in the past. He recommended that investors stay away from the stock, considering its sharp decline and referring to the situation as a “money game.”
