Thursday, July 14, 2011

Ekadharma International Tbk. - Bright Future Ahead

EKAD is one of the stock engaged in the chemical sector where this sector is currently experiencing a fairly rapid profit growth in the last 2 years. Within this sector there is also stock like BRPT, MIND, DUTI, ETWA, SRSN, INCI, Sobi, TPIA, and UNIC. However, after going through the process a more detailed analysis, only BRPT, MIND, DUTI, TPIA, and EKAD a good performance record.

EKAD has a privilege over other chemical stock. In valuation, it is not the cheapest EKAD with PBV 2.9 X that they have. In any net income, EKAD still very much compared with TPIA, MIND, and BRPT. Only, ROE EKAD who reach level 32% is the highest in the sector. Stock at an average chemical sector is experiencing growth in its net profits were heading, but the majority only have a ROE below 10%. So EKAD be the best in this sector profitability ratio.

From the technical side, EKAD in recent weeks have a tendency to rebound at 20 days MA area. Where now at the level of 550. For these stocks, we set a target price of Rp 710 .- / shares until the end of 2011. Best Buy EKAD exist at the level of 540-550. Stop Loss at level 500.

From the aspect of money management, because EKAD only has advantages in terms of ROE, then we do not recommend you to invest your funds in EKAD with the same amount as you may already invested in the shares of stock "pearl" like CFIN, MFIN, TBLA, CLPI , Aisa who does have the advantage over many aspects in their respective sectors. For investments in EKAD, we recommend a maximum of only 10% of the amount of your funds. It is also caused by very high volatility of EKAD.

source - smart technical analyze

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