Tuesday, March 31, 2009

OCD Stock Pick #3: TLK

This is the third in a series of stock picks for the stock pickers suffering from OCD who MUST go long in the world's most dangerous bear market...

As an OCD investor, to protect yourself from your ways, your only chance is purchasing at the correct time. In this time of economic turmoil, for an investor, OCD or otherwise, not to demand a discount due to unforeseen events is reckless.

Thus the author recommends previous pick that can be recycled for the OCD amongst us.

The author previously bought at $20.12 on November 20th, 2008 and recently sold at $26.55. Since that time, there is absolutely no significant news related to the company, positive or negative. The stock has risen and fallen with general market swings.

In the previous analysis the risk factors were the following:

1) Global market conditions
2) Currency risk

Since that time the IDR (Indonesian Rupiah) has actually strengthend 5% versus the USD. The oil prices have stablized, which probably provides a significant amount of support for the IDR.

The author recommends buying TLK again at a value discount of $19/share (9.34B market cap) and 11.1x FY2008 cashflow. (9.34B / .84B = 11.1)


Lockstep said...

This stock just took off. I was too conservative on the buying price and missed a double. Shucks.


Interesting company sounds like you picked the right stock.