Mitrabahtera Segara Sejati

For those of you who are already familiar with my style of investing, you probably already know the reason why I discuss about this stock. Yep, Mitrabahtera Segara Sejati (MBSS) is too good to be ignored because of its low valuation, ie PER 4.4 and PBV of 0.7 times at a price of Rp1,050 per share, while there is nothing wrong with the company’s financial performance. Until the full year 2013, MBSS had a net profit of US$ 39 million, representing a return on equity (ROE) of 16.3%, while its equity grew 14.4%. Outlook for the future? Well, also no problemo.

The Risk of Losses in Stock Investing: How Bad it Could be?

The risk of loss in stock investing is an integral part of the investing itself. Most investors, whether they are newbie or experienced, usually aware of the risks, but they are rarely paying attention to it. Every time I meet with fellow stock investors, they’re usually only like to talk about potential gains of their investments, without giving any word of the risk of loss that might be suffered. In essence, when an investor started to invest in stock, then it is the gain that comes to his mind, without any picture at all about how much the loss he may be suffered, or perhaps more exactly, he did not want to think about it at all! But it's perfectly humane, anyone willing to lose?

But in fact, one of the important keys for success in the stock market (either in trading or investing, but we’re talking about investing here) is the ability to measure the likelihood or risk of loss. This capability is needed, so that you can take steps to minimize the risk of such losses.

When Market Price Doesn’t Mean Anything

A few days ago, the management of the Bank Tabungan Pensiunan Nasional (BTPN) announced that Sumitomo Mitsui Banking Corporation (Sumitomo) took over 15.7% stake of the Bank from the hand of TPG Capital, at a price of Rp6,500 per share, or far above the market price at the time, which was Rp4,300 per share. Thus, Sumitomo officially holds 40% stake in BTPN, but the story is not lying there, but: Why was Sumitomo willing to disburse funds totalling Rp15.2 trillion or about US$ 1.5 billion, to take over 40% stake in the Bank at the price of Rp6,500 per share, whereas the market price of the share itself was only Rp4,300?

                

To understand this, perhaps we can return to the year of 2009 when I began my investing career in the Indonesian Stock Market, of course with an extremely small funds, which taken from my regular salary as an employee in a company.

Jokowi for President!

Friday March 14, 2013, about 3.00 pm, the Governor of Jakarta, Joko Widodo aka Jokowi, announced to the media that he has been officially run for president, in the 2014 presidential election to be held shortly. Shortly thereafter.. the capital market responded to the news with great enthusiasm! Only one or two minutes after the news announced, the Jakarta Composite Index (JCI) skyrocketed to dramatically gained 3.2 percent! Or the highest during the year of 2014 so far.

Me myself on that Friday afternoon received many telephone, short messages, BBM (you name it) that 'reporting' about the rise of the index, and at first I did not really care about that, just as usual. However, when it was mentioned that Jokowi is officially run for President, frankly I feel excited too.

Kawasan Industri Jababeka

There are at least two listed property companies in the Eastern Region of Jakarta, precisely in the District and City of Bekasi: Lippo Cikarang (LPCK), and Kawasan Industri Jababeka (KIJA). If LPCK more focus on residential properties, KIJA is selling the land plots of industrial estate to build factory, etc. And now, the company we are going to discuss here is KIJA. Okay, here we go.

The history of KIJA began in 1989, when the Provincial Government of West Java give permission to a consortium to manage a vacant lot in the area of ​​Bekasi, to be used as an industrial area. The consortium was led by two entrepreneurs named Setyono Djuandi Darmono and Hadi Rahardja, who became the founder of a company that is established later, Kawasan Industri Jababeka (KIJA). The word 'Jababeka' is a short for 'Jawa Barat Bekasi', which probably because the company obtained its permit from the Government of West Java (Jawa Barat) Province, while the land is in the area of ​​District of Bekasi. While 'Kawasan Industri' means 'Industrial Estate'.

IPO Prospect of Wika Beton

The industry of construction is identical to the concrete, where if you want to build high rise buildings, highways, bridges, etc, you would certainly need the concrete. And if Wijaya Karya (WIKA) is one of several major construction companies in Indonesia, its subsidiary, Wijaya Karya Beton (WTON), is actually the largest concrete producer in Indonesia, which has eight factories, six sales regions, and two representative offices spread from Binjai, North Sumatra, to Makassar, South Sulawesi. While their closest competitor, PT Adhimix Precast (not a subsidiary of Adhi Karya/ADHI), only has four units of concrete factories.

Although WTON is already the largest concrete producer in the country, but the opportunities for company to grow bigger is still wide open with the implementation of the infrastructure development program by the Government of Indonesia through the MP3EI (check the word in google for further information), which have been proposed since 2008, and the implementation will continue until 2025. In fact, over the last five years, the production capacity of concrete of the company is continuously increased, from 1.1 million tonnes in 2009, to 1.5 million tonnes in 2013, with an average utilization rate of 85% per year (which was meant, although WTON production capacity continues to be increase, but the new capacity is almost always get used directly). And of course, the income of the company for five years also continued to rise steadily, from Rp1.4 trillion in 2009 to Rp2.6 trillion in 2013.

Bank BJB

Bank BJB (BJBR) is one of the few listed banks that have released its financial statements for the period of the third quarter of 2013. And like many other companies that have released their statements, BJBR’ financial performance is quite good (Yep, if you notice, the companies who release their statements earlier are usually recorded good performance, although not always). But perhaps, there are other points beyond its financial performance that make this stock attractive for investment.

This BJBR, since it's IPO in July 2010 (we’ve had discussed it, here is the link), it had been interesting because the valuation is very low at its IPO price of Rp600 per share (I forgot the details of calculation, but the price is undervalue). Either because of the low price or other factors, at the time BJBR skyrocketted to 1,000 in just a few days after its first trading day, and then continued to rise until hits the 1,770 level, recorded a gain of nearly 200% in just four months.