Proton ... Apr 09

It announced a potentially lucrative deal to assemble pure electric vehicles for export in a tie-up with Detroit Electric Ltd.

There are also speculations that Proton will benefit from the perceived close link to the country’s new administration. Its chairman Datuk Nadzmi Mohd Salleh was reported to be one of the six persons that Prime Minister Datuk Seri Najib Tun Razak called upon for input on the economy when he was made Finance Minister a couple of months back.

However sceptical remain about Proton’s near-term prospects. From a fundamental point of view, nothing has changed about Proton.

Car sales at Proton have contracted for five consecutive months as at end of February 2009.

While its prospects remain in question, the company’s balance sheet looks healthy with cash per share estimated at RM1.60.

Khazanah Nasional Bhd has a 42% stake in Proton. The Employees Provident Fund have been steadily buying shares in Proton from the open market, raising its stake to 15% as at March 18 2009.