Sorrayuth Scandal Takes Toll On B E C World's Share Price: Corruption

[webfact]

CORRUPTION

Sorrayuth scandal takes toll on BEC World's share price

The Nation

BANGKOK: -- BEC World's stock has crashed by almost 7 per cent in four days amid reports that major companies plan to withdraw their commercials from the TV programmes of Sorrayuth Sutassanachinda on Channel 3.

Shares of BEC closed yesterday at Bt57, down by Bt1.50 or 2.56 per cent. In the past four days, the shares have retreated by Bt4.25 or 6.9 per cent.A Kiatnakin Securities analyst said that unless Channel 3 comes out and reveals its policy in doing business, there would be uncertainty in BEC's income from commercial airtime sales and that would hurt its stock. Channel 3 is under Bangkok Entertainment, a BEC subsidiary.

Sorrayuth has three of his daily programmes - "Ruang Lao Chao Nee", "Ruang Den Yen Nee" and "Ruang Lao Sao Athit" - running on Channel 3, which contribute about 20 per cent of BEC's revenue.

Tough competition ahead

In the long term, the Kiatnakin analyst recommends selling BEC as its stock price is higher than the estimated value of Bt47.60 per share.

There are also future risks from greater competition from the expansion of satellite and cable TV and digital TV.

The Anti-Corruption Network on Tuesday, in an open letter, asked Channel 3 to reveal its stance on the alleged graft offences involving news talk show host Sorrayuth.

The letter, signed by ACN chairman Pramon Sutheewong and sent to station operator BEC World, reminded the management of its obligation to ensure transparency and fight against corruption.

The ACN outlined the case against Sorrayuth, which stemmed from a ruling by the National Anti-Corruption Commission that found grounds to suspect fraudulent transactions between Sorrayuth's news production house, Rai Som, and listed MCOT, which is majority-owned by the state.

A Maybank Kim Eng Securities (Thailand) analyst said it was difficult to estimate the damage to BEC's shares as it was uncertain how many sponsors would drop their TV commercials from Sorrayuth's shows. Even if all the advertisers leave, there might be other products wanting to sponsor the programmes.

"BEC's main income still comes from evening soap operas and after the evening news," the analyst said. "We will also have to see when the commercials will be withdrawn. Normally they are placed in advance."

The reports might have hit BEC's shares but the steep decline also reflected profit-taking by investors after the price rose much earlier, he said.

-- The Nation 2012-10-12

[asiawatcher]

Exactly what I said a few days ago, let the public dump shares until BEC dumps Sorrayuth. Pretty simple really but the fact they have not so far, indicates contempt of the public who financially support them. As a public company - not to remove Sorrayuth - is a very stupid move.

[fareastguy]

Like I said before .. sometimes these "I'm bigger than thou" people need assistance in finding their way out of the door.

I'm not sure but I seem feel a slight change in the wind, are the Thai people instead of being reportedly excepting of corruption actually getting tired of it & having their noses rubbed in it while they try to make an honest Bt300 a day !!

Now that the internet plays such a huge daily part in peoples lives these fraudsters are no longer anonymous faces but their actions are laid bare for all to see, now they have nowhere to hide.

Keep dumping the shares & he will eventually be seen as a bad investment too !!

[webfact]

@tulsathit

Loving or loathing Sorrayuth has become something more or less defined by where you stand in the Thai political conflict.

ASTV has staunchly demanded Sorrayuth's departure from TV 3, while Matichon's put him gloriously on the cover of its weekend magazine.

Web boards have been divided. With anti-Sorryuth alliance bringing together dozens of organisations questioned about its motives.

[Fozfromoz]

Exactly what I said a few days ago, let the public dump shares until BEC dumps Sorrayuth. Pretty simple really but the fact they have not so far, indicates contempt of the public who financially support them. As a public company - not to remove Sorrayuth - is a very stupid move.

I am just wondering if the hesitancy is because he is popular. If they punted him in haste, and he was picked up by another network, then that could hurt them later. TV ratings and all,of that perhaps.

[fareastguy]

#5

Your quite correct that probably is the current issue I'm sure, nobody want's to dump a media star, but when he turns into a hot potato maybe he should be asked to take a long vacation until the heat is off.. at least!!

[keemapoot]

He's a mega star for channel 3, and he gets to produce his own shows and other shows. It's a lucrative and mutually beneficial arrangement. He doesn't want to go anywhere, his channel doesn't want it, and viewers will win regardless because another channel would pick him up in a minute.

[Samedeepwaterasyou]

This guy is a perfect reflection of how fuc_ked up the self titled Thai Hi So's are : complete lack of accountability , contempt of the rule of law , integrity level on par with John Gotti ...

Pathetic .

[Thai at Heart]

As much as all he does is read the papers to the viewer, he isn't guilty of anything yet. He's talentless, but he's innocent so far.