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Saturday, 11 April 2020

(Tradeview 2020) - Open Letter to Koon Yew Yin on Dayang, Margin & Ethics



Dear Tan Sri Koon,

You do not know me but I know you like many of the investors in the KLSE. Your reputation from the days as professional engineer, early pioneer of Malaysia’s construction and building industry as the co-founder of IJM, Gamuda, Mudajaya, prominent investor and philanthropist is known to many. Your vocal opinions and write ups are often read and referred by many people as well. In short, you are a very influential man. At a ripe age of being an octogenarian, many look towards you for guidance, wisdom and advice. This is especially so when it comes to investing in the share market. In fact, you have many followers and readers, I believe the most even in the entire i3 forum.

I have thought very long and hard whether to write an open letter to you, Tan Sri, as what I am  about to say is not easy to swallow. I rarely write in reference to anyone in all my years writing, however in this instance, I cannot keep silent. I have to call you out for your unethical action in your public advice to readers / investors in the share concerning Dayang (5141).  

Dayang share price today is RM1.30. In your latest 10th April blog writing, you said that you have sold all Dayang even at a loss because of the price trend reversal being unsustainable and the oil market. However, you have no less than 30+ blogs promoting Dayang from as early as 2019 until today. Even up until 1st April, you were asking “Ikan Bills” investors to not be stupid to sell Dayang and reproduced a write up from Public Bank with TP of RM 2.80 to support your claim. I have attached some recent articles  by you below with some highlights on points you made (refer below).

I am calling you out now for misleading the public, readers and especially new investors who are new to investing with limited funds / savings. For everything you said and written have impact because of your stature, did you consider the repercussions of your action? You are rich and successful and do not need the money, but there may be some who have worked hard to save up their income hoping to invest in the share market during this lockdown period to supplement their family income or business income. As there are many writers in the i3 forum, some are great teachers, some are shady, some are syndicates hence many new investors would hope someone like you would be the right person to guide or teach them. What you have done is to a large extent grossly unethical and even immoral as we are now in the midst of an economy stagnation stage nation due to Covid-19. 

I agree that everyone needs to take responsibility for their own action especially when it comes to investing. We must however acknowledge that as part of the investing community and society as a whole, as human being as well, we owe it to one another to be righteous and upright, and if we cant, we might as well keep silent. However, you chose to speak and write in the public forum, with the goal of helping people make money and teaching people how to fish. My observations - what you did was the  opposite. You may start off wanting to give guidance and sharing good stocks so everyone can make money (including yourself) like Liihen, Hevea, Favco, Jaks, Teoseng, Dayang amongst the many, but whenever the calls start to go against you, you refuse to acknowledge but rather blame it on investment banks, company management, securities commission, ikan bilis investors, i3 readers on the forum, trends etc but you never once acknowledge you made a mistake. Even assuming you do not want to acknowledge mistakes, which is human nature (most wouldn’t admit), the least you could do is not double or triple down on the same call and write it publicly with so much conviction whilst criticising others who do not think like you. The best example for this erroneous mistake by you is Dayang. 

I do not hold a single share in Dayang, but I think it is a good turnaround company which would do well if not for the oil market plunge. I can understand that this was unpredictable but that is the problem with companies in exposure towards commodities. This is a risk of investing but I dare say many investors do not think like you. The right thing to do was to own up or stick by your call, if you indeed believe so but not write articles over articles promoting your stock then selling suddenly and quietly leaving all your readers (supporters and new inexperience investors) suffering the brunt of the losses. You may say you also took a hit with Dayang, but please know that you can sustain the losses, not everyone who read your article and look up to you are as rich and successful as you who can sustain losses. Some may never rebound from this losses. Especially those who you followed your advice to invest on margin. Many would have lost their savings and be in debt as a result. This is also one of the worst advice you have shared with readers and new investors - to use margin to invest. 

I3 Forum may protect you from the comments column hence, we will not know how readers actually think of what you have done. I think I have said enough. This is my personal opinion, I do not represent anyone or organisations but myself. Please understand, I have no animosity towards you and I respect you for your contribution towards education, poverty and also you past contribution towards Malaysia’s construction and building industry. I am not calling you out not to insult or embarrass you, instead intend to express my view for you to continue to be a part of the investing community with greater sense of accountability / responsibility. You must understand with your influence, stature and knowledge, many people look up to you and seek out advice and guidance.

Do not abuse the trust people placed in you. Economics like the laws of the world, have its own way of finding an equilibrium.

Sincerely,

Tradeview 
11th April 2020



26th March





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