Goldman Sachs sell on ASII (posting below May 23) Comment?
'+' On Mon, May 23, 2011 at 8:15 AM, positif01 <[email protected]> wrote: > We keep staying out of ASII irrespective of the hype from a few > institutional buyers. Lacking fundamental justification to keep this stock > on the high ground, we tend to believe that a bubble is just in progress and > ready to burst anytime soon. With much reduced expectation on increasing > earnings at 9 to 13% on remaining quarters of 2011 and the full fiscal year > 2011 and 2012, we do not see any value and/or growth which can be > advantageous foresight with ASII ahead, other than solid trading liquidity > which may seems the main driver to attract a few institutional buyers. For > retail investor, this type of low price leverage stock with high level price > is definitely not a wise choice of investment when market average is still > riding late stages of primary bullish cycle. > > The recent upsurge lacking fundamental pretext is a clear sign of crowd > behavior in trading/investing by hope rather than by fact. Meanwhile, clear > set of facts including ASII management admission show a down beat view on > this company prospect for next two years on the road. > > We second to Goldman Sachs which cut ASII to "sell" from "neutral" since > March 28, 2011, and yet we see any fundamental changes on ASII business > prospect for the next 2 years which may soon warrant adjustment on the > recommendation. And, we think reasonable to maintain ASII target price at > Rp49,000 as Goldman Sachs mapped out in the following chart. > [image: ASII GS.png] > > Along with this ASII "bubble", we anticipate a further pressure into IDX as > "Selling in May" seasonal pattern pressure is still intact everywhere. > However, we do not see any deep swing as we had May last year. Once this > little ASII bubble gets break, it may bring along most likely financial > sector to go down along. > > '+' >
<<ASII GS.png>>
