Nov 17, 2010

Should I follow TRIO's Kindarto Kohar?

In the last 16 trading days, shares price of mobile phone distributor PT Trikomsel Oke Tbk (TRIO) has skyrocketed 67.09% to Rp660 per share on November 16 from Rp395. Trading volumes on November 10 and 16 reached Rp1.15 billion and Rp1.62 billion respectively, highest compared to the previous days.
On November 16, Trikomsel's President Commissioner and shareholder Kindarto Kohar announced a 2.48 million TRIO stocks purchase to Indonesia Stock Exchange (IDX). The purchase was done on September 29 2010 at Rp250 per share or Rp620 million with investment purpose.
If Kindarto would sell the stocks right now at the market price, he could easily gain 164% just less than 2 months. In total, he could bag Rp1.02 billion from the stocks sale.
Trikomsel's current shares surge is spurred by the market speculation that Northstar Pacific plans to place stake in Trikomsel at Rp600 per share.
A source familiar with the matter said Northstar has mandated Credit Suisse to place TRIO. Northstar's key executive namely Glenn T. Sugita now sits in the TRIO's board of commissioner and the company's founder Sugiyono Wiyono Sugialam is President Commissioner.
Northstar Pacific owns 25% stake in Trikomsel via Canopus Finance Ltd, while Sugiyono controls via PT Delta Sarana Perdana with 62.31% shareholding. The question is does Kindarto Kohar know something is going on in Trikomsel's major shareholders?
Disclosure: No position at the stock mentioned above.

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