DRB Hicom

DRB Hicom is one of those stocks which has greatly disappointed.  It has tried for years to turn Proton around, but to no avail.  I think they did not realize the task of titanic proportions it takes to make this company positive.

Some of the hype with its new car may be deserved, but does one car model make a company?  I don't think so.  Proton will need to come out with hit after hit in order for the DRB Hicom to recover.  Even if they do come out with hit after hit, the process takes massive amounts of time and capital.  We're talking about years AFTER the first hit comes out.

For example, assuming the average new model design process takes 2 years, to get 3 hits, we are talking 6 years to get 3 hit models out there.  Most investors would say okay, call me in 6 years and rightly so.

For those of you willing to plough your hard earned money in DRB Hicom, here you go.  The stock has just hit a major support point at RM 1.49.  I think the support is strong, but the stock will fundamentally get wrecked for the next few years.