KLSE: SALCON – Cannot up. No use lah.

Uncle and aunty investors in Malaysia are a bunch of hardened, no nonsense motherfuckers. They don’t do fancy-schmancy keh kiang (pretend to be clever) stuff like fundamental analysis or technical analysis. Candles and moving averages are foreign to them. A stock is either Good (hoot 9 ee!) or Bad (sell ah, don’t catch falling knife).

If I were to consult one of them about Salcon, I bet I would get a succinct but accurate evaluation: Cannot up. No use lah.

This simplistic approach to investing drives a lot of stock market movement, especially in this MCO-era of retail investors flush with cash from loan moratoriums and low FD interest rates. You’ll do well to take the sentiments of uncle and aunty investors into account.

However, since I score highly in IQ tests, I’ll attempt to give a more thorough analysis about this dismal example of erectile dysfunction that is Salcon. Limpeh is in the upper percentile of intelligence one okay. At least my primary school teacher always said so, right before he starts touching me in strange and private places. 

I queued for Salcon on Thursday night after news broke that they’re purchasing a 51% stake in a glove manufacturing company. I don’t remember which company and I don’t care enough to remember. It’s probably some third rate Alibaba company.

I’m being unkind but my point is, the specifics don’t matter. It’s gloves. Retail investors should be piling in and pushing the stock to brave new heights, just like Mah Sing a few weeks ago. I remember making a small profit on that. I’ve gone in and out of Mah Sing several times since with varying degrees of success.

So why didn’t Salcon’s share price rocket?

It has a lot to do with current sentiment. Despite our COVID-19 cases breaking records day after day, investors seem to think a vaccine is on the horizon and they’re voting with their ringgit.

Gloves are out, recovery plays are in. Even Genting is up ffs, and we’re still under CMCO. 

There’s just no arguing with the infinite wisdom of uncle and aunty retail investors. Sometimes we cannot merely use logic and analysis and historical instances to guide our decisions.

Sometimes a simple sentiment dipstick will save you some pain.

Gloves are out.

Lukewarm reaction to Salcon’s glove venture, The Edge reports smugly.

They’re 100% right. I shouldn’t have attempted to goreng an upstart glove pretender. That’s my bad. I was greedy and hoping for a quick payday. I will stick to the Big 4 from now on.

Always factor in the mass retail investor mindset before investing, financial gangsters!

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