We recommended to enter into BNBR in the end of 2010 to reap possible volatility toward the first half of 2011. As price has moved quite significantly for this stock amid the resurface of global growth pressure, we have recommended our client to get out of this stock for profit since 2 days ago. In line with our expectation on negative divergence on BUMI's price volatility for the next 3 month as we second Goldman Sachs' rating for sell BUMI this year with adjusted target price last March at Rp2,3000, we think it is necessary for clients to take the same side on BNBR.
Last night closing at London Stock Exchange also confirmed the technical suspicion on Bakrie's group movement for the next 3 months. While FTSE, the leading composite index of London Stock Exchange, was down for -0,52%, Vallar, Plc. tumbled incredibly -6,52%, the steepest decline in Vallar stock price history since its listing date back to June 2010 ( http://finance.yahoo.com/q?s=VAA.L). The serious price arbitrage between Vallar in London and its local counterpart in Indonesia, specifically, its parent BNBR, which instead closed higher +5%, support suspicion over something not right in between the delayed general shareholders meeting. We believe technically and fundamentally, the price movement in the past short term have been baseless. And, in saying so, we tend to think in tandem with Goldman's neutrality than JP Morgan and their other colleagues of Bakrie's group creditors. '+'
