The Star Online:
The financial meltdown of dotCom companies in the US in 2000 had led investors to shift their money and energies back to old economy companies.
That crash came after over-enthusiastic investors had bought the stocks at soaring prices irrespective of the viability of the business models.
Since then, prices of new economy stocks have climbed up from the lows of 2000, and winners like eBay have surpassed even the highs of that year.
Over here, some of the early listings on the Mesdaq market have disappointed. Many of the companies earned profits in the hundreds of thousands of ringgit, not millions, with no visibility as to their performance in the near future.
There are, however, a handful of companies that sought and found a nice niche. Jobstreet Corp Bhd, for instance, has been producing steady earnings growth and is making progress in regional markets.
Green Packet Bhd, mTouche Technology Bhd and OSK Ventures International Bhd, in a triple alliance, are top performers in their earnings and share prices, and they continue to move with the swiftness of high-speed Internet networks.
They announced last Friday that their jointly-owned GMO Ltd, listed in London, will buy 20% of a wireless services company in China for RM60.7mil, with an option to buy the rest for up to RM350mil. This would be the largest acquisition by Mesdaq companies and shows their commitment to expand in China’s mobile space.
There are good and bad business models in both the new and old economies. Hopefully, there will be several more Mesdaq companies that are executing feasible plans in the regional new economy.
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