The Stock Exchange of Thailand (SET) has warned investors to take caution when trading shares of M Vision Public Company Limited (MVP) as the shares' trading conditions remain highly volatile even having been put on the highest level of the market surveillance list.
Traders must carefully consider the stocks' fundamentals and closely follow information regarding MVP stocks from the SET.
The company's share price more than doubled over the past two months, from below 2 baht at the beginning of May to 6.4 baht on June 30, causing the SET to intensify the market surveillance measures imposed on the stock and put it on level 3 in which net settlement, credit limit, and non-cash settlement are prohibited.
However, MVP's price continued to rise and close at a new high of 7.9 baht on Monday with a negative price-to-earnings ratio (P/E) and a price per book value (P/BV) of 12.26 times.
The company has clarified through the SET system that no major developments are affecting the rising trading conditions.
An MVP token holder who requested anonymity said that its price movements were related to MVP Coin, a digital utility token, issued by its subsidiary whom MVP owns 51%. The digital voucher token can be used as a medium of exchange for services and discounts for Caravan Stay.
The source said the management team of MVP Coin has informed the token holders last week on social media that the coin has a high chance to be listed on a digital asset exchange this week as it is now awaiting approval from the regulator.
However, the MVP Coin issuer told us yesterday that the listing is likely to be delayed due to 'some important malfunctions' which cannot be disclosed to the public at this time.
The source said he began to be uncertain about the coin as the management team has been inconsistent with the news and now his concern is further intensified by the SET's warning statement.
He said another factor that causes him concern is some news regarding fraud in a decentralise finance platform (DeFi) in which a cryptocurrency influencer presented himself as an investor and persuaded traders to buy the platform's governance token in hopes of price increases but later confessed to being the owner of that platform and took profit from price rises.
However, some MVP token holders still believe that this coin could be one of the country's successful pilot projects that set a precedent for other utility coins as MVP, a mother company of MVP Coin, is a listed member that is regulated by the regulator.
MVP is an IT media, content producer, and event organiser that has been listed on the Market for Alternative Investment since 2018.
MVP shares closed at 7.50 baht, down 0.40 baht or 5.06% in trade worth 55.38 million baht on Tuesday.
