(Icon) Don't Be Overly Pessimistic About UMNO Related Companies

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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 not what I advocate).

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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