Sovereign risk, page-11

Daily I suspect AL and Co. are trying to tell investors to expect the cost of doing business in Malayaia is going to change. This latest link by @Pimpel is Amanda's telling this to business leaders in a round-about way. Call it a walk-about if you like.

It is fast becoming apparent to my brain that for Lynas to battle this out in court and in the news the result will be SP slides, shut down of plant when production limits are reached and no license to operate. I do not see the hand of Dr. M nor the hand of Japan going to work in Lynas favor. The cost to shut down with resulting loss of revenue would surely be more than the cost to ship waste. I think Yeo is holding better cards but that doen't mean I think she is right. Money will do the talking soon enough.

The big dig is will this happen time again with the changes of the Malaysians guards ministers come another election? Delays and uncertainties are destroying wealth.  The recent directors buying was perhaps just simply a vote of confidence for Amanda going forward. Might be heart-breaking but clearly not wallet breaking for investors if the decision is sooner rather than later.

I am staying the course with a cord holding. I might buy a 10-15% dip and really expect a +25% pop when final decision is announced and the uncertainty factor is removed until the next election.