You can contact the author (Teguh Hidayat) by email, The author live in Jakarta, Indonesia.

See my pictures in Instagram, @teguhidx.

Bumi Resources, and The Rising Coal Price

In one session of value investing training some time ago, a participant asked, ‘Mr. Teguh, what is your opinion about Bumi Resources (BUMI)? I read your article about the company’s management attempt to restructure their debts. If the attempt was a success, the stock will rise, no?And I replied, ‘Whether BUMI would successful or not in restructuring its debts, or whether the company’s financial performance will improved in the future, that only time will tell. But one thing for sure, the decision to buy BUMI at the price of Rp50 per share clearly offers a very different risk (and also different potential gain) than if we buy the stock at Rp1,000 per share. I'm not interested when BUMI was still trading at Rp1,000s per share, but what if we can buy it at 50 only?

Harum Energy

About a year ago, precisely in July 2015, I found a fact that when the Jakarta Composite Index (JCI) began to fall, in this case 7% for year to date (YTD), it turned out that mining stocks, especially coal, has dropped deeper, where the index of the mining sector have tumbled 26.3%, the worst than any other sector, and it aggravates the decline that has been occurred since the previous years. I was then asked myself, 'Is it possible that coal stocks will fall to the price of Rp50 per share, all of them???' (Note: Rp50 per share is the lowest possible price for any stock in Indonesia Stock Exchange).