You can contact the author (Teguh Hidayat) by email, teguh.idx@gmail.com. The author live in Jakarta, Indonesia.

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Capital Expenditure, an Easy Explanation

Some time ago a friend of mine asked me, 'What is the capital expenditure?' And I realized that although we have discussed a lot of things in this website, but we has never discussed about capital expenditure, or commonly abbreviated as capex. While in fact, the factor of capex is important in analyzing the prospects of a stock, since it answered the question, 'What is the company doing to gain additional revenue/profit in the future'. Therefore, we will also discuss it here, of course, with some easy words. Here we go!

Questions of Beginners, and The Answers

Every time I held a seminar/training of value investing, I provide an opportunity for participants to ask questions through email about investing in stocks. And well, there is an incoming email which seems to represent the majority of questions from investors, especially beginner investors aka the newbies. Therefore, I write this article. Actually, for those of you who are new in the stock market (has become an investor less than 1 year), you may have hundreds of questions in your head. But hopefully this article can at least answer some of these.

Investment Opportunity in Cement Stocks

On Friday 16th January, for the first time in history, the government of Republic of Indonesia intervened the cement industry by announcing a decrease in the price of cement at a maximum of Rp3,000 (abour US$ 0.25) per sack. And the result is predictable: The stocks of cement on the Stock Exchange collapsed immediately. On that Friday, the stock of Semen Indonesia (SMGR) fell 7.4% from16,200 to 15,000, and dropped further to the level of Rp14,100 per share on the next trading day. Other cement stocks like Semen Baturaja (SMBR), Holcim Indonesia (SMCB), and Indocement (INTP), all three also fell between 4.9 to 12.2% in two trading days after the cement price reduction policy was announced.

It’s Okay to be Different, As Long As..

Some time ago I met a friend, a senior investor, and we talked a little bit about one of the most famous stock investor in Indonesia: Mr. Lo Kheng Hong (LKH). According to this friend of mine, LKH deserves not to be called as 'Warren Buffett of Indonesia', because there are some fundamental differences (of way of investment) between LKH with Buffett. For example, LKH is not a long-term investor like Buffett. In 2002, LKH bought United Tractors (UNTR) at the price of Rp400 per share, but in only 3 years later he had it sold. While Buffett, since he bought the shares of Coca-Cola in 1989, until today, or more than 25 years later, these shares are still in the portfolio of Berkshire Hathaway.

Economic Challenge for President Jokowi

On Friday, January 2, 2015, President Jokowi inaugurate the opening of the first trading day in stock market in 2015, at the Stock Exchange Building, Jakarta. Although in the last few years, the opening of the stock market at the beginning of a year is regularly attended by the President of Republic Indonesia, but the presence of Jokowi was special because we all knew that, related to the tragedy of Air Asia, he had to go from Papua - Jakarta - Pangkalan Bun – Surabaya, and back to Jakarta again in a matter of days, and that's not including fulfilling the state duties such as receiving George Soros at the Palace, held a meeting with the ministers related to fuel prices, and appointed several new military high officials. However, he still had time to came to the Stock Exchange and also present on time (before the market opened at 09.00 AM), while before that (in the same morning) he visited the market of Tanah Abang first! To ‘blusukan’ as usual, and also to open the trading activities at the market.

‘Follow the Trend’ in Fundamental Analysis

Some time ago I received a suggestion from a friend, 'Dear Sir, I know that you are a value investor who tends of using fundamental analysis. But as we know, in the market, there are more technicalists than fundamentalists. So what if you also write about analysis of a stock from a technical perspective? Your website will have more readers.'