MCA officials and even Prime Minister Dr Mahathir Mohamad have come out to say that the Huaren buyout of Nanyang Press Holdings Bhd is a purely business deal. Even if we take them at their word, however, it is still a very bad investment at the moment, for the following reasons:

Nanyang's financial year ends in June. Given that June is almost upon us, it would be ludicrous for an investor not to wait that additional few weeks to see the company's results for the whole year.

Nanyang is not in a financially strong position. Its latest quarter earnings were RM0.00 per share, compared with RM0.12 per share over the past 12 months. Its average yield per share has fallen for three consecutive years since 1998.

The company still has a RM50 million ringgit defamation suit against it pending. It would be sheer stupidity to buy a company with such a high contingent liability. Even if they are virtually certain that the case will be won, it would only be prudent to wait until the case was actually heard.

These three facts point clearly that the hasty and hurried purchase of the company is for political, not business, reasons. Any businessman worth his salt would at least wait a few months before buying the company.