Stock Pick : DKFT ; RAJA, GTBO

STOCK PICK : DKFT ; RAJA; GTBO

- DKFT STRONG BUY ON PVT PLACEMENT BY JINSHENG MINING AT IDR2,200/SHARE TO AN AUSTRALIAN MINING COMPANY

- RAJA STRONG BUY AS SUNMAX ENTERPRUISE LIMITED PLANS TO INCREASE STAKE IN RAKA TO 40% FROM 25% AT PRESENT. TP: IDR980

-  GTBO: 550-700. 2012 net profit could increase to IDR250 billion (EPS: IDR100/share) from a forecast of IDR120 billion at the end of 2011 due to higher contribution from its coal sales. It is now trading at a p/e ratio of 5.7X 2012 prospective earnings, far below the coal industrial average p/e ratio of 14X. At that p/e ratio average, GTBO should be fairly valued at IDR100 X 14 which is equal with IDR1,400. Best buy is at any levels below IDR600.

Source : Listri Adistri