Sarawak Election Theme Play?

Sarawak state assembly has been dissolved end of last month and now we are waiting the 10th state elections war to begin very soon. Nonetheless, except timber stock, most of the Sarawak stocks share prices have been corrected on last month this month. Why is this?

Anyway, construction will still the main theme to play for this election, should BN continues to lead Sarawak in the near future. I quite like HSL as it is a fundamental solid and record proven company, but it's PER is running a little bit high for now.

If I want to invest, perhaps I will consider to take NAIM, because it is a lot cheaper compare to HSL. Of course, some discount has to give to NAIM because HSL has a better fundamental than NAIM.

NAIM currently has 2 on-going projects in Sarawak, namely Bengoh Resettlement Scheme and  Bakun-Similajau Transmission System. If BN won the election without doubt, NAIM may gets more projects. I also noticed that NAIM is quite aggressive to move into Sabah since last year.

In addition, NAIM is owning 36% shares of DAYANG, which estimating able to generate more positive cash flow for NAIM by having estimated 4-5% of gross dividends, while alleviating the finance cost.

Surprisingly, with the good fundamental NAIM enjoying, it's share price has been facing selling pressure close to 20% from the peak since February. There were huge volumes transacted. However, it doesn't look like the big shareholders are selling their shares. Most likely it's minor shareholders are taking profit or something that we are not aware of.

With the improving result and bright prospect NAIM is having, I'm sure it's share price can soar higher in the near future. In addition, since NAIM is discounted 20% from the peak and it's riding on election theme, why not?

What do you think?