Market Outlook After IDX Regulations

In August 24, 2015, the Jakarta Composite Index (JCI) fell to 4,164, which was the lowest position of the index since almost two years ago. And in Thursday, August 27, 2015, the Indonesia Stock Exchange (IDX), the host and regulator of Indonesian capital market, finally held a press conference regarding the current condition of the Indonesian stock market. Here are the points of the conference.

Press Conference of IDX. Source: www.idx.co.id

How to be Greedy When Others are Fearful

This morning, the Jakarta Composite Index (JCI) tumbled 2.0% to 4,033 only minutes after the opening. Shortly after, I receive Whatsapp from one of alumni of my value investing class, asked about one of the stocks that I recommend (and not only I recommended it, I buy it as well), let us call it ‘A stock’. He asked, Dear Sir, is A stock still in your pick list? Because I saw its price fall down this morning.

As an Investor, What Do I Do?

What my mom thinks I do

Nippon Indosari Corpindo

If you use a standard method of valuation, then with PER of 22.3 and PBV of 5.2 times at the price of Rp1,085 per share, Nippon Indosari Corpindo (ROTI) at first glance seems unattractive. However, if we talk about ‘wonderful company’ like this company, then we probably can not afford to buy it at a ‘wonderful price’, or in other words, the current price is fairly reasonable and worth the buy. And indeed, ROTI is a wonderful company (in Indonesian language, ‘roti’ means bread), and I'll tell you why.