Human trafficking the reason Digi is down?

Digi is one of the largest companies and its share has been rip roaring.  But why is it not doing well this year?

From the Edge:

(May 8): President Barack Obama’s effort to build the largest trade alliance in the Pacific faces a roadblock in the Senate, where a bill to give the White House "fast track" authority  in trade negotiations is hung up over Malaysia’ dismal record on human trafficking.  On Wednesday, the road to the Trans Pacific Partnership got even rockier, thanks to Democratic Senator Robert Menendez.

The president and Senate Republicans find themselves on the same side here, pushing for a trade promotion authority measure that would force Congress to take an up-or-down vote on trade pacts -- including Obama's TPP -- without adding any amendments.

The Pacific trade pact, which is still being negotiated, is a vital to Obama's legacy and potentially the keystone of the administration’s oft-criticized rebalance to Asia.

Menendez last month added an amendment to the fast-track measure that would ban that trade status to any country that the State Department classifies as a Tier 3 (the worst level) violator on human trafficking. Malaysia, which aspires to be part of TPP, is Tier 3. And Mendendez heightened that pressure this week in a Senate Foreign Relations Committee hearing, where he openly questioned whether the White House was putting inappropriate pressure on the State Department to move Malaysia to the less-odious Tier 2.

The whole human trafficking fiasco has put Malaysia in a hard place.  On one had it may choose to try and go for the TPP.  This would entail immigration crackdowns and deportation.  On the other hand, it could continue to do what they are doing and just keep going down the same route of lax enforcement of immigration.

For those who don't know, Malaysia has massive amounts of foreign workers.

The reason why Digi has gone up so much was on the back of migrant workers.  Digi is the lowest prepaid provider.  For cash strapped migrant workers, this is their communication source and Digi benefits the most.

If Malaysia puts a stop to the migrant worker inflow, yes Digi will go down.  But honestly I don't see this happening.  Malaysia needs labor to construct its mega projects over the next few years.  Digi is  shaping up to be a nice buy.  I think TPP inclusion is secondary at this point in Malaysia's eyes.