From: Wuddy Warsono, CLSA
To: Wuddy Warsono, CLSA
Sent: Tuesday, August 07, 2007 8:52 AM
Subject: CL INDO: Indo fundamentals remain sound, Tabbush still likes Indo
banks
Research Today (attached):
There are signs of a frothy stockmarket. Nick Cashmore put together comments
from CLSA Jakarta sales team below:
A young man there who left his father factory to become a full time stock
trader. When the father learns about how much fortune his kid is making in the
market, the father decides to study the stock market.
Local retail stock brokers are enjoying almost celebrity status.
A bank owned by a provincial government in eastern part of Indonesia is one
of the biggest stock market speculators in Surabaya.
In Bali last week and when learning I was a stockbroker almost everyone
would ask me what stock to buy.
An office boy working for a local stockbroking firm lost his entire saving
in a manipulated stock.
Kids in Surabaya are studying finance-related degrees, not engineering
anymore. This is attributed to the bullish stockmarket.
Now that the market mechanism is working; ebullient retail punters face
reality. However, underlying fundamentals remain sound. We still believe that
JCI index target of 3,000 is achievable. Stocks to accumulate on weakness:
Telkom (TLKM IJ), Perusahaan Gas (PGAS IJ), Kalbe Farma (KLBF IJ).
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