Tactical Screening: Indonesia

Screening for potential undervalued securities in Indonesia

We intend to employ a similar equity screening methodology that was undertaken for the Malaysian market (See Link) to screen for potentially undervalued securities listed on the Jakarta Stock Exchange (JSE). Recap, our screening methodology is predominantly based on the formulae of justified price-to-earnings (P/E) and price-to-book (P/B) ratios. Our computation of justified P/E and P/B for Indonesia is shown as follows:

ID_Oct16_Computation.png

Based on the above, the results of our screening are shown as follows:

ID_Oct16_Results.png

Lamicitra Nusantara Tbk PT

PT Lamicitra Nusantara Tbk is an Indonesia-based company engaged in the development and management of real estate and property. The Company’s business activities are the management of container depot, hospitality, trading, and development and operation of real estate and property. Some of the Company’s projects include Tanjung Emas Export Processing Zone, Jembatan Merah Plaza 1 and 2, Ruko Jembatan Merah, Hotel Tunjungan Crystal, Depo Peti Kemas, Darmo Hill Real Estate, Pusat Grosir Surabaya and Tunjungan Electronic Centre. The Company’s subsidiaries are PT Tunjungan Crystal Hotel, PT Dharmabhakti Adijaya, PT Wiratangguh Dharmacitra, PT Penta Persada Pertiwi and PT Persada Alam Nusantara. Its head office is located in Surabaya, Indonesia. Read more

ID_Oct16_Coy.png

Purely from a technical perspective, it appears that PT Lamicitra Nusantara is currently on a downward trend, after touching a peak of more than IDR500. It has fallen below its 20D-MA support line as well as a bearish MACD indicator. Potential support line in between IDR260-IDR300 per share.

DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES OR RELATED INSTRUMENTS MENTIONED ABOVE.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

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