Icon8888 Gossips About Stocks
(Icon) Don't Be Overly Pessimistic About UMNO Related Companies
At age of 92, Dr. Mahathir came out from retirement to campaign against Barisan Nasional. On 14 May 2018, he finally pulled down Najib and replaced him as the new Prime Minister of Malaysia.
Pursuant to change of control at Putrajaya, many UMNO related counters had been heavily sold down.
(Destini Bhd share price has come down by a lot)
(so does KUB share price....)
(DNEX share price less affected)
Are all these UMNO related counters forever doomed ?
I beg to be different.
Let us imagine ourselves crawling into Dr. M's brain and try to feel it. When Dr. M casts his gaze in UMNO's direction now, what is likely in his mind ? Anger ? Hatred ? Sense of revenge ? No. None of the above. Dr. M must be feeling symphatetic, just like a father seeing his child suffering from a fever. Dr. M sees a place where he spents his whole life growing up, a place he shares many common value. In there, he sees friends, ex colleuges, saudara saudara perjuangan, etc.
Dr. M was against UMNO when it was under the leadership of Najib. But now that Najib is no more in power, Dr. M has nothing against UMNO (but UMNO needs to clean up its acts a bit lah. Cannot continue with the old way). Despite its recent set back, UMNO's infrastructure to reach out to Malays remains intact. For our Malay friends, UMNO remains a relevant vehicle to champaign their cause, to safeguard their religion, etc.
My guess is that Dr. M feels that UMNO needs to be reformed, not destroyed.
The same applies to Anwar Ibrahim. Fair enough, he did suffer quite a bit when Barisan Nasional was in power. But deep in his heart, I don't think Anwar hates UMNO either.
Why do I have such perceptions (above) ?
Because based on my observations, our Malay friends are very different from Chinese and Indians. Chinese and Indians are famous for their disunity. However, the Malays treat each other as BROTHERS. They genuinely love each other. Something very commendable. (How I wish all Malaysians are like that.)
I am not speculating that UMNO will one day be united with Anwar or Dr. M. All I am saying is that Dr. M and Anwar have nothing against people related to UMNO (provided they don't continue to defend Najib). For them, Malay etreprenuers should still be given chances to grow and thrive (which I am totally supportive).
In this regard, I belive that it is irrational to assume that all UMNO related counters are doomed. I believe that some of the good counters (such as Destini) at current price offers a reasonable bargain from risk vs. reward point of view. However, I suggest that we must stick to fundamentals. Only buy those companies with good earning prospects.
Last but not least, I would like to clarify the following :
(1) I am politically neutral when come to blogging. I do not side with either BN or Pakatan Harapan. My readers comprise supporters of BN as well as Pakatan Harapan.
(2) I am supportive of affirmative action. If a particular race is not doing so well, we should give them more chances. It is not good to have huge income disparity. (please do not scold me for supporting cronyism or corruption. That is a totally different story).
I hope this article does not offend anybody. If anybody feels that I have said something objectionable, please don't hesitate to let me know. I am open to removing or amending my article accordingly.
Have a nice day.
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Discussions
2 people like this. Showing 28 of 28 comments
the reasons why contracts is retracted, cancelled, reviewed because some can be directly handled by the Ministry's itself to increase revenue for the GOVT. Others can be still awarded to 3rd parties based on a lower fees.
2018-06-04 13:10
I beg to differ.at least ah jib kor related counters will go holland for sure.
2018-06-04 13:24
C if any of these counters will do some show for dead cat rebound...
I remembered Lim thean Keat counters (good friend of anwar) such as magnum etc did put up some good show b4 he disposed all eventually
2018-06-04 13:27
Nevertheless can curi ayam a bit for technical rebound....dont fall in love will do
2018-06-04 13:44
I think what many people isn't getting is that with the new government drive for more transparency and fair competition, most industries landscape is going to be even more competitive than ever before. Monopolies in certain industries might crumble, inefficient businesses that are previously limping by will go extinct, there will be winners i.e lowest cost manufacturers, efficient-run operators etc, but there will be a lot more losers. Far from saying new gov is bad to the economy. Conversely, it is beneficial to the overall economy because all the efficiencies get pass along to the consumers which improve their spending power. But what benefits the end users will make the business landscape more competitive and stock picking more challenging.
2018-06-04 14:06
Simple reasons why our friend icon8888 wrote the above article. He was trapped and wanted to get out.
2018-06-04 14:18
The fruits of economic development must be shared among all races. Over emphasis on efficiency will lead to certain groups being marginalized.
It is not sustainable
Of course I am not saying that I support rent seekers that get paid for not doing anything. That is a different story
2018-06-04 15:13
I find the comments put forth here is most disturbing at best and totally nonsensical at the worst, save for @Ricky Yeo. Reaction in the market is like everything will end immediately, like, there is no tomorrow.
There got to be rule of law, that is, contracts awarded must be honored, especially those that had been awarded years ago. While those just awarded (like within last 6 months) could be cancelled with minimal loss to both parties (contractor as well as government). If there are corrupt practices, then, by all mean bring the evidence to MACC, charge them in court, not shout out here like they are guilty (especially just by association). Guilty until proven otherwise - is this the way forward??? Is this the new Malaysia we want? Guilty by association, guilty until proven otherwise?
Of course going forward, more competition is always desirable.
2018-06-04 15:28
actually it is good if the mass keep pessimistic, you can collect super cheap :D
2018-06-05 08:13
>>>
(2) I am supportive of affirmative action. If a particular race is not doing so well, we should give them more chances. It is not good to have huge income disparity. (please do not scold me for supporting cronyism or corruption. That is a totally different story).<<<<
This policy was in existence for last 40 years.
Please write on its outcome so far, onjective)y and truthfully.
Is there a better and fairer alternative?
2018-06-06 06:11
A party has done so much mistake and corruption and opportunity takes without any sense of stand for all wrong behavior. Icon8888 - i believe u r still in dreaming that created by these politician (similar in orang kampung). Most important they are NOT representing the race rather they are representing the people with muslim name by using race as a tools. In Malaysia there are 2 party one use race and another use religion for their benefits. WAKE UP!! now we have better choice! that simple.
2018-06-06 11:39
just follow S'pore model, how to help the Bumi ... U see, the Malay in S'pore is more educated & progress more compare to our Bumi. Learn from S'pore , no need to crack your head to get idea to help our Bumi, Just follow & adapt from S'pore model to help our Bumi. I rest my case.
2018-06-06 19:59
Affirmative action should not be based on race, but class. Why should Mercedes driving Malays receive assistance that should be channeled to the needy Malays instead? Anyway, it's not a total loss for crony stocks, but they need to grow up and compete. Those who have hitherto win contracts from who they know rather than what they know, they are surely in trouble now. Investors like us will need to separate the chaff from the wheat.
2018-06-06 20:05
Some affirmative action was based on class. Anyone remember RMT (rancangan makanan tambahan) even the poor citizens like me with no father received them when i was young? Quota system was as well based on class if one can argue, based on 70% bumiputra populations vs 20% chinese, 10% indian and rest of the races.
Just the way how people look at the program and how it was implemented that people had different perception that affirmative action is only meant for specific races.
If you look at Indonesia, you will indeed agree that affirmative action were still valuable program that may averted Malaysia the 1997 indonesia crisis. You remember similar incident but more severe 13th may in Indonesia at that time?
One can argue anywhere in the world when income disparity becomes so huge that the locals were like living as a slave to the non locals causes what happens is similar to scenario such as pre ww1 and ww2. It is a scary thing to imagine but it always happens.
So sometimes we cannot be so selfish as in to merely think what was taken away from us, instead be grateful of what we have / given.
If you are capable you don't need to be given these things, you will earned it yourself.
Its not as if in Malaysia when one is hardworking one will still live in poverty.
The social paradigm is still very much possible when one is hardworking in Malaysia be it you are a chinese, indian or bangladeshi.
So be grateful of that, many other people in this world does not have that privilege.
2018-06-06 23:14
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Contracts have to be reviewed. Low can be lower.
2018-06-04 13:04