Investment Strategy, For Now

You may notice that Jakarta Composite Index (JCI) moves nowhere lately, that it does not go up, but tends to decline, but with slooow movements. In April the index was closed at 4,839, and when this article was written, it was at 4,753, or dropped but only 1.7%. If this position lasted until the end of the month, this month of May would be the first month in 2016 where the JCI went down, but with a decline of 1 – 2% only, so we could not say that the market has entered its bear period.

Central Omega Resources – Reborn?

In April 2012, I found a ‘hidden pearl’ in stock of Central Omega Resources (DKFT), which then priced at Rp1,670, or equal to Rp334 per share after stocksplit, and the analysis was simple: DKFT posted net income of Rp177 billion in 2011, which is entirely derived from the export of nickel ore from two mines in Morowali (Central Sulawesi), and Konawe (Southeast Sulawesi), where the two mines were still in an early stage of exploration. So if later the company carried out further exploration, then DKFT would produce more ore, and the company's revenue would significantly increased. The management themselves had targeting a net income of Rp475 billion in 2012, and Rp792 billion in 2013, and it was of course very attractive.

Coal-Related Stocks: Outlook

Until Tuesday, April 26th, 2016, the Jakarta Composite Index (JCI) closed at 4,814, gained 4.8% since the beginning of the year, but the index of the mining sector, including coal mines, rose higher at 20.5%. The cause of these substantial gains is pretty clear: The rebound in oil prices, which two months had been as low as US$ 27, but today the oil traded at US$ 42 per barrel. On the other hand, one of the largest mining service company, United Tractors (UNTR), has released its financial statements for the first quarter 2016, and its profits dropped 55.3% from the same quarter of 2015. While another coal company, Resource Alam Indonesia (KKGI), its net income rose but only because of gain in Rupiah exchange rate, while the revenue is still down.

How to Educate Children to Invest in Stocks

In my book 'The Calm Investor' (published in Bahasa Indonesia), I said that a child can be taught to invest in stocks since the age of as early as six years. And a friend then asked, how? Because, even an adult usually find it hard to learn about stock investing, let alone a young children? But what if I told you that a young children can learn more quickly than adults, and are more likely to make a significant profit in the future?