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Bakrie-related stock: why not??

According to our analysis, not all Bakrie-related stocks are bad. Some have a good management and a good business prospect though. Of course we have to extra care dealing with these kind of stocks since the majority shareholder - Bakrie n Brothers - on most of these stock - seems to have no interest to deploy a good corporate governance. This behavior will time to time gives misfortune to other investor, especially the retail investor.

We have noted that BUMI and UNSP have interesting pricing and good potential gain if there is no fraud in their financial report. Their ROE are more than 31% up to the Q3 financial report. Further, business downturn as in a recession will certainly end, hopefully in the next 2 quarters. In the early time of the recovery period, basic commodity as coal and palm oil are highly demanded. Their price will boost up. So, in this period of recession, accumulation of basic commodity stock is recommended.

ELTY is also interesting since the current price is still far from its intrinsic value according to our pricing model. With a toll road concession in hand, they have control on where and when they would start a property project along side their toll road. As we all now, a piece of property has a really high value if it has a good access to it, ultimately a toll road. Just imagine a toll gate next to every ELTY project. If this could not boost their profit, I do not know what else could.

So, always keep your risk rewarding. Play safe!!


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