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.'
Subscribe to:
Posts (Atom)