Buana Listya reports Rp250 bio profit

PT Buana Listya Tama Tbk (BULL) today reported a 664.89% jump in net profit during the first 9 months of this year.

In a publication announced today, Buana Listya booked Rp250.64 billion net profit in 9M 2011 from net loss of Rp44.37 billion in 9M 2010.

Operating profit skyrocketed 5,931.29% to Rp229.17 billion from operating loss of Rp3.93 billion. Buana Listya, a subsidiary of PT Berlian Laju Tanker Tbk (BLTA), posted Rp752.96 billion operating revenue from Rp375.28 billion.

Disclosure: No position at the stock mentioned above.

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Surya Semesta 9M profit surges 340%

Property developer PT Surya Semesta Internusa Tbk (SSIA) reported a 340.1% jump in net profit at the end of September this year, underpinned by contribution from industrial land.

Surya Semesta booked Rp183.1 billion in net profit in 9M 2011 from Rp41.6 billion in 9M 2010. Net profit margin more than double to 8.4% from 3.5%.

The company's EBITDA surged 174.9% to Rp388.4 billion from Rp140.8 billion. Operating profit skyrocketed 239.5% to Rp336.1 billion from Rp99 billion, boosting its margin to 15.5% from 8.4%. Operating revenue increased 84.4% to Rp2.17 trillion from Rp1.78 trillion.

Disclosure: No position at the stock mentioned above.  

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Atlas Resources sets IPO at Rp1,500

Coal miner PT Atlas Resources Tbk has set its initial public offering (IPO) at Rp1,500 per share, entitling the company with Rp1.22 trillion proceed.

During the book building, Atlas Resources also obtained strong demand, making the offer experiences oversubscribe of 2.5 folds.

The company is planning to upsize the IPO by 3.5% to 811.33 million shares from the initial plan of 783.33 million shares.

Atlas Finance Director Dono Boestami, as quoted by Bisnis Indonesia today, said the company will exercise a green shoe option of 28 million shares. The company is allocating 117.5 million shares for the option or 15% of the IPO size. PT UBS Securities Indonesia and PT Indo Premier Securities are the IPO underwriters.

The company plans to spend US$105 million up to 2013 as capital expenditure. About 60% of the capex will be spent next year.

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Jakarta Composite Index (JCI) slightly inched 0.44% to 3,829.96 on Friday last week. The JCI is estimated to face selling pressure this week. How about the market today? Here are stock recommendations provided by Bisnis Indonesia today:  

Panin Sekuritas:

The JCI may suffer selling pressure this week. Sentiments from Europe may shadow the domestic market. The index may move within the range of 3,790-3,900.

e-Trading Securities:

Today, the JCI may experience potential correction and move within the range of 3,761-3,875. Several stocks to watch: JPFA, MYOR, and INCO. Last weekm foreign investor recorded a Rp893.8 billion net buying.

Sinarmas Sekuritas:

The index technically may rise in a limited move within the range of 3,803-3,855. Taking profit may emerge. The September's financial statement will provide sentiments into the market. Several stocks such as MYOR, ITMG, SMCB, and BBKP could be monitored.

Disclosure: No position at the stock mentioned above.

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INDF, ICBP profits rise 3% and 18%

Indonesia's instant noodle maker PT Indofood Sukses Makmur Tbk (INDF) and its subsidiary PT Indofood CBP Sukses Makmur Tbk (ICBP) today reported a 3.11% and 18.60% increase in net profit for the first 9 months of this year (9M 2011).

INDF's net profit in 9M 2011 was Rp2.32 trillion from Rp2.25 trillion in 9M 2010, underpinned by an increase of 19.29% in net sales. Operating profit rose 11.64% to Rp5.18 trillion from Rp4.64 trillion. INDF's net sales increased 19.29% to Rp33.77 trillion from Rp28.31 trillion.

Indofood CBP recorded Rp1.53 trillion net profit in 9M 2011 from Rp1.29 trillion. Operating profit slightly increased of 2.55% to Rp2.01 trillion from Rp1.96 trillion. Net sales grew 6.48% to Rp14.45 trillion from Rp13.57 trillion.

Disclosure: No position at the stock mentioned above.

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Atlas Resources seals US$95 mio loan

Coal producer PT Atlas Resources Tbk, that is controlled by Indonesian businessman Andre Abdi, has secured US$95 million loan facilities in August and October this year.

Those facilities, both arranged by PT Bank Permata Tbk (BNLI), were secured  by Atlas Resources from Bank Permata, DBS Bank, and PT Bank Danamon Tbk (BDMN).

Atlas Resources obtained US$45 million loan from Bank Permata and Bank Danamon and the remaining facility has been channeled by Bank Permata and DBS Bank.

Atlas aims to sell 783.33 million new shares or representing 25% of its enlarged capital during initial public offering (IPO) scheduled on October 31 2011.

PT Indo Premier Securities and PT UBS Securities Indonesia have been mandated by Atlas Resources to be the IPO lead underwriters. 

In an official prospectus published today, UBS has been appointed by Atlas Resources as the stabilization agent of the IPO.

If the IPO experiences oversubscribe, Andre Abdi provides over allotment option to UBS as of 117.50 million shares.

In parallel with the IPO, Andre Abdi also intends to sell 155.29 million shares in Atlas Resources via private placement.

Atlas Resources will use 40% of the IPO proceed to support capital expenditure, regarding to the development of infrastructures and supporting facilities. About 27.5% of the proceed will be used to acquire additional coal concession and put more capital into subsidiaries. Atlas will also use US$25 million to settle compensation fee to Noble.

In 2010 and 2009, Atlas Resources produced 1.25 million tons and 1.06 million tons coal. In the first four months of this year, the company produced 333,474 tons. Most production was contributed by its subsidiary dubbed PT Berau Bara Energi.

Atlas Resources owns 18 subsidiaries namely Berau Bara Energi, PT Diva Kencana Borneo, PT Hanson Energy, PT Aquela Pratama Indonesia, PT Optima Coal, PT Optima Persada Energi, PT Citra Global Artha, PT Papua Inti Energi, PT Kalibara Energi Pratama, PT Gorby Energi, PT Gorby Global Energi. PT Gorby Putra Utama, PT Anugrah Energi, PT Banyan Koalindo Lestari, PT Cipta Wanadana, PT Karya Manunggal, PT Musi Mitra Jaya, and PT Sriwijaya Bara Logistic.

Disclosure: No position at the stock mentioned above.
 
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Lonsum, Salim Ivomas post strong profit

CPO producer PT PP London Sumatra Indonesia Tbk (LSIP) and edible oil maker PT Salim Ivomas Pratama Tbk (SIMP) reported a 104.5% and 108% jump in net profit for the period of January-September this year on the back of higher revenue.

London Sumatra (Lonsum) booked Rp1.31 trillion net profit and Salim Ivomas reported a Rp1.27 trillion net profit.

Salim Ivomas's operating revenue increased 44.79% to Rp9.41 trillion in 9M 2011 from Rp6.5 trillion in 9M 2010, while Lonsum's operating revenue rose to Rp3.52 trillion from Rp2.4 trillion. Salim Ivomas's CPO production grew 16% to 606,000 tons from 524,000 tons, while fresh fruit bunch increased 10% to 2.02 million tons from 1.83 million tons. Lonsum's CPO sales rose 15% to 586,000 tons.

Salim Ivomas is 72% owned by Indofood Agri Resources Ltd, PT Indofood Sukses Makmur Tbk of 6.4%, and public holders own the remaining shares.

 

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Stocks jumped Thursday, joining a global rally on hopes Europe is heading toward a solution to its debt crisis.

The Dow Jones Industrial Average surged 339.51 points, or 2.9%, to 12,208.55, reclaiming the 12,000 level for the first time in three months, as European leaders hashed out an eleventh-hour agreement to address the fallout from Greece's debt woes. 

A report showing U.S. growth accelerated in the third quarter also helped buoy sentiment. The blue-chip index, as quoted by WSJ.com, put in its best daily performance in more than two months, following a wider global rally. European stocks, commodity prices and the euro all surged. The euro staged its biggest one-day gain in almost 10 months, and investors piled into "junk" bonds, while Treasurys fell to three-month lows.

What about Indonesia stock today? Here are stock recommendations as provided by Bisnis Indonesia today:

Minna Padi Investama:

Jakarta Composite Index (JCI) is estimated to break a resistance level of 3,822 today. Several stocks to watch: HRUM, BORN, INDF. Yesterday, the JCI gained 1.99% to 3,813.

Sinarmas Sekuritas:

The index technically may move within the range of 3,780-3,850 today. Several stocks to monitor ITMG, ASII, PTBA, and BBRI.

e-Trading Securities:

The JCI may continue its gain and move within the range of 3,751-3,850. Several stocks to watch: ITMG, GJTL, and HRUM.

Disclosure: No position at the stock mentioned above.

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Bukit Asam 3Q profit surges 66.91%

The state-controlled coal miner PT Bukit Asam Tbk (PTBA) experienced a 66.91% increase in its net profit during a period ended September this year as a result of higher sales and profitability.

In a financial statement published today, Bukit Asam booked Rp2.32 trillion earning in 3Q 2011 from Rp1.38 trillion in 3Q 2010.

Operating profit rose 75.46% to Rp2.86 trillion from Rp1.63 trillion, representing a rise in the company's margin to 36.90% from 27.63%.

Gross profit increased 50.76% to Rp3.98 trillion from Rp2.64 trillion. Bukit Asam came with a consolidated sales of Rp7.75 trillion from Rp5.90 trillion, showing a 31.36% growth.

Disclosure: No position at the stock mentioned above.

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Tiga Pilar sets rights issue at Rp500-Rp560

Rice and noodle maker PT Tiga Pilar Sejahtera Food Tbk (AISA) has set a range of its rights issue at Rp500-Rp560 per share, entitling the company with a proceed of Rp700 billion.

During these corporate action, Tiga Pilar plans to issue 1.2 billion new shares. The proceed will be used by the company as working capital.

Tiga Pilar has mandated PT CIMB Securities as the lead underwriter of the rights issue. "We have submitted the rights issue documents to Bapepam-LK yesterday," said Tiga Pilar Finance Director Sjambiri Lioe as quoted by Bisnis Indonesia today. Each holder of four existing shares will entitle with three new shares.

Disclosure: No position at the stock mentioned above.

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Tunas Baru to raise Rp114 billion

PT Tunas Baru Lampung Tbk (TBLA), that is controlled by Sungai Budi Group, aims to raise Rp114 billion by issuing new shares without preemptive rights.

In an official statement filed to Indonesia Stock Exchange, Tunas Baru will issue 200 million new shares or 4.05% of its outstanding shares at Rp570 per share. The rights issue proceed will be used by the company to pay debt to UOB Kay Hian.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

The Dow Jones Industrial Average dropped 207 points, or 1,7%, to 11,706.62 yesterday. The losses snapped a three-day winning streak in which the blue-chip Dow rose more than 400 points. The action followed reports that a Wednesday meeting of EU finance ministers was canceled, although a scheduled summit among European leaders seeking a way out of the debt crisis is still planned.

The scotched meeting, as quoted by WSJ.com, increased concerns about whether Europe will be able to sign off on a plan to recapitalize euro-zone banks, beef up the euro zone's bailout fund and restructure Greece's debt. How about Indonesia stock market today? Bisnis Indonesia provides stock recommendations from brokerages:

Panin Sekuritas:
Jakarta Composite Index (JCI) is still volatile today. The movement will be affected by the third quarter result of companies. The index may move within the range of 3,679-3,735. Several stocks to monitor: PTPP, LSIP, and BBKP.

e-Trading Securities:
The index may move in mixed with potential correction to the range of 3,636-3,735. Several stocks to watch: AKRA, ICBP, and KAEF.

Disclosure: No position at the stock mentioned above.

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Visi Media puts more warrants via IPO

PT Visi Media Asia Tbk, parent company of TVOne and Vivanews, that is partly owned by Bakrie family, has enlarged warrant issuance almost double to 1.01 billion warrants from 571.5 billion. It also has risen the IPO price to Rp280-Rp305 per share from initial plan of Rp260-Rp285 per share.

Both strategies are expected to help raising the IPO proceed to Rp1 trillion. "The additional warrants are intended to anticipate upcoming financing needs," said Vicky Ganda Saputra, Director of PT Danatama Makmur, as quoted by Kontan daily today. Danatama is the Visi Media's IPO underwriter.

The first warrants issuance will be set within the range of Rp300-Rp310. The book building has been starting since October 18 to October 28 2011.

Disclosure: No position at the stock mentioned above.  

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Chandra Asri seeks US$250 mio loan

PT Chandra Asri Petrochemical Tbk is exploring a chance to secure a US$150 million-US$250 million loan facility.

The company's Secretary Suryandi said Chandra Asri is unable to seek the facility more than the figure as it will put a US$850 million assets for collateral.

To pledge the assets, Chandra Asri has obtained an approval from extraordinary general meeting of shareholders yesterday. The facility is expected to due date within 5-7 years. The company is underway in talks with four syndicated banks such as Bank Danamon, DBS Bank, HSBC Bank, and Standard Chartered Bank. 

Disclosure: No position at the stock mentioned above.  

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Cardig Aero sets IPO at Rp350-Rp590

PT Cardig Aero Service Tbk is seeking a Rp184.69 billion proceed from initial public offering (IPO) or within the price of Rp350-Rp590 per share. The shares listing at Indonesia Stock Exchange is scheduled on November 29 2011.

As quoted by Kontan daily today, the price range is representing a 6-11 folds of its price to earning ratio of the company's sector which is 13.1 folds.

Cardig Services, a parent company of publicly listed PT Jasa Angkasa Semesta Tbk, has launched a 313.03 million shares or 15% of its total equity.

The shares are consisting of 166.95 million shares of the company portfolio and 166.95 million shares owned by PT Cardig International, that currently holds 51% stake in Cardig Aero.

Referring to the IPO prospectus published today, Cardig Aero has mandated PT Bahana Securities as the only lead underwriter with fully commitment underwriting.

About 40.63% of the IPO proceed will be used as an equity participation in PT Purantara Mitra Angkasa Dua, 40.63% will be allocated as equity additional in PT Cipta Anugrah Sarana Catering, and 18.75% for debt payment to Standard Chartered Bank.

Cardig Aero is now owned by two major shareholders Cardig International and PT Menara Nusantara. Cardig Aero has four subsidiaries namely Jasa Angkasa Semesta (50.10%), PT Jas Aero Engineering Services (51%), PT Citra Anugra Saranaboga, dan Cipta Anugrah Sarana Catering.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Stocks rose Monday, pushing the Nasdaq Composite into positive territory for the year and the Standard & Poor's 500-stock index to the cusp of it.

The Dow Jones Industrial Average, as quoted by WSJ.com, advanced 104.83 points, or 0.9%, to 11,913.62 yesterday, led by Caterpillar, which jumped 5% after posting a strong earnings report that helped set the session's positive tone. 

The action built on a four-week winning streak that has been the blue-chip index's longest weekly string of gains since January. The Standard & Poor's 500-stock index added 15.94 points, or 1.3%, to 1,254.19, finishing 0.3% below break-even for 2011. The Nasdaq Composite surged 61.98 points, or 2.3%, to 2,699.44, pushing up the technology-heavy index up 1.8% for the year. How about Indonesia stock market today? Here are stock recommendations as quoted by Bisnis Indonesia today.

e-Trading Securities:

Jakarta Composite Index (JCI) today may continue its gain within the range of 3,622-3,751. Yesterday, the JCI rose 2,38% yesterday to 3,706.78. 

Reliance Securities:

Today, the JCI is estimated to continue its gain with a short term target of 3,722. The movement will provide a push for the index to rise.

Disclosure: No position at the stock mentioned above.

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Smartfren scouts Rp2 trillion revenue

CDMA-based operator PT Smartfren Telecom Tbk (FREN) is scouting a Rp2 trillion revenue next year, 2 folds from this year of Rp1 trillion.

Smartfren President Director Rodolfo Pantoja said the revenue is expected to rise despite the higher customers of data services.

"ARPU on data services is higher than it is on voice and message services," he said as quoted by Bisnis Indonesia today.

According to him, ARPU on voice is now Rp15,000, while data services provide ARPU of Rp50,000-Rp70,000.

Disclosure: No position at the stock mentioned above.

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Northstar, TPG takeover Multistrada

A consortium of Northstar Pacific Partners and Texas Pacific Group (TPG) has soon completed a takeover of 20% stake or 1.25 billion shares in tire maker PT Multistrada Arah Sarana Tbk (MASA) at Rp565 a share or Rp706.25 billion.

Three executives familiar with the matter said Northstar-TPG has entered into a share sale and purchase agreement with a number of investors such as Pieter Tanuri and Syailendra Capital.

"Northstar-TPG hope to bring up Multistrada's market capitalization to US$2 billion or Rp17.71 trillion within 3-5 years, a 456% jump from last week's position at Rp3.18 trillion," the sources said as quoted by Bisnis Indonesia today.

Referring to the target, Northstar-TPG is estimated to put up MASA to about Rp2,893 per share within 3-5 years.

Co-founder Patrick Walujo at Northstar, former banker at Goldman Sachs, declined to comment. "I can't comment on the deal," he said. Read the remaining stories here.

Disclosure: No position at the stock mentioned above.
 
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Stock recommendations today

Investors last week managed to push stocks, at least temporarily, up and out of the volatile trading range in which they had been stuck for more than two months.

Until Friday last week, the Dow Jones Industrial Average, as quoted by WSJ.com, had been caught in a 1,000-point band between 10,650 and 11,650. 

Violent up-and-down lurches of more than 1% a day became commonplace. With Friday's 267.01-point surge, the Dow exited from that range, finishing at 11,808.79. How about Indonesia market today? Here are stocks recommendation provided by Bisnis Indonesia today:

e-Trading Securities:

Today, Jakarta Composite Index (JCI) may consolidate with the closest support level at 3,579 and move within the range of 3,579-3,665. Several stocks to watch: BDMN, INTP, and CTRP.

Panin Sekuritas:

The JCI tends to retreat and may test the level of 3,590-3,650. The index is estimated to fluctuate in which investor is still waiting the voting result and the meeting of European leaders.

Sinarmas Sekuritas:

Technical, the index tends to be mixed within the range of 3,570-3,670 today. Several stocks to watch today: SGRO, ISAT, UNVR, and BDMN,

Disclosure: No position at the stock mentioned above.

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Northstar, TPG to buy tire company

Strategic alliance of Northstar Pacific Partners and one of the largest global private equitu Texas Pacific Group (TPG) lured US$820 million cash from wealthy investors. With such cash, they are in frenzy shopping several potential companies in Indonesia.
Northstar-TPG are holding stakes in PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and a coal contractor PT Delta Dunia Makmur Tbk (DOID) that its price is hard to rise after engulfing recent massive sell.
Which company is ready to be the next anchor for their investment. Is it PT Multistrada Arah Sarana Tbk? 

Please login or register to read the remaining story.    

Disclosure: No position at the stock mentioned above.  

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MAPI opens Krispy Kreme first store

PT Premier Doughnut Indonesia (PDI), the sole franchise licensee of Krispy Kreme Doughnut Corporation in Indonesia, has opened its  first store with new concept in west Jakarta at Central Park. 
The opening recognizes the potential of Central Park as a  premium mall and retail magnet in  the densely populated West Jakarta area. 

“We decided to open our 10 th Krispy Kreme Doughnut store on the ground level of Central Park, the  latest upmarket mall in Jakarta,” said  Agnes Suganda, Assistant General Manager of PDI, in an official statement filed to Indonesia Stock Exchange.

The Krispy Kreme Doughnut CAFE features a new subtle look:  A fun and multi-sensory atmosphere with a chic interior  that provides customers the most tangible experience of the brand.  

The interior and related decor elements—color, materials, lighting, furniture, graphics, and architectural elements is part of the  brand's new positioning aimed at broadening its appeal across the target clientele.

“The lighting is also pleasantly muted in this spacious 170 square meter retail outlet. The store is divided into three main sections:  An architecturally significant dining area where customers are comfortable in groups or alone. 

Premier Doughnut Indonesia is a licensed franchisee of Krispy Kreme Doughnut Corporation and a subsidiary of PT Mitra Adiperkasa Tbk (MAPI). MAPI is a leading  lifestyle retailer in Indonesia with over 950 retail outlets in 37 Indonesian cities.

Disclosure: No position at the stock mentioned above.

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Bumi 3Q coal sales reaches 70%

Indonesia's largest thermal coal exporter PT Bumi Resources Tbk (BUMI) is estimated to achieve 16.5 million tons of coal sales in the third quarter of this yearm a 28% higher than 13 million tons in 3Q last year. 

In the first half of 2011, Bumi recorded 30 million tons of coal sales, counting 45% of its target this year of 66 million tons.

"By end of 3Qm Bumi achieved 70.45% of the annual target," said Director Dileep Srivastava, as quoted by Kontan.com today.

According to him, the company will announce the third quarter's result in November. The company expects a US$92 per ton on coal's average selling price. Referring to the ASP, Bumi's coal sales might reach US$1.5 billion.

Disclosure: No position at the stock mentioned above.

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Cardig Aero Services sets 15% IPO

PT Cardig Aero Services Tbk, parent company of publicly listed PT Jasa Angkasa Semesta Tbk, launches a 313.03 million shares or 15% of its total equity via initial public offering (IPO) scheduled on November 29 this year.

The shares are consisting of 166.95 million shares of the company portfolio and 166.95 million shares owned by PT Cardig International, that currently holds 51% stake in Cardig Aero.

Referring to the IPO prospectus published today, Cardig Aero has mandated PT Bahana Securities as the only lead underwriter with fully commitment underwriting.

About 40.63% of the IPO proceed will be used as an equity participation in PT Purantara Mitra Angkasa Dua, 40.63% will be allocated as equity additional in PT Cipta Anugrah Sarana Catering, and 18.75% for debt payment to Standard Chartered Bank.

Cardig Aero is now owned by two major shareholders Cardig International and PT Menara Nusantara. Cardig Aero has four subsidiaries namely Jasa Angkasa Semesta (50.10%), PT Jas Aero Engineering Services (51%), PT Citra Anugra Saranaboga, dan Cipta Anugrah Sarana Catering.

Disclosure: No position at the stock mentioned above.

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Ciputra Property to propose buyback

Property developer PT Ciputra Property Tbk (CTRP) today unveiled a maximum of 615 million shares buyback or 10% of its outstanding shares.

Ciputra Property, that is controlled by Indonesian mogul property Ciputra, aims to make higher performance of its stocks, which are still currently below the primary price. In return, the proposed buyback is expected to increase earning per share. To proceed the buyback, Ciputra Property scheduled an extraordinary general meeting on Novemver 23. PT BNP Paribas Securities Indonesia has been mandated as a buyback brokerage. 

Disclosure: No position at the stock mentioned above.

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Bakrie Plantations to pledge assets

Palm oil producer PT Bakrie Sumatera Plantations Tbk (UNSP) will pledge 60% of its plantation assets to certain lenders in a bid to secure a US$250 million new club deal facility.

President Director Ambono Janurianto, as quoted by Bisnis Indonesia, said the facility, that will be redeemed this month, is the new facility. In return, there are no assets pledged to the facility.

The three anchor banks for the facility are Bank Internasional Indonesia, Credit Suisse Group AG, and Raiffeisen Bank International AG.

He is optimistic that the company enables to obtain the facility, despite a US$185 million debt maturity scheduled on November 1 2011.

Disclosure: No position at the stock mentioned above.
 
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Stock recommendations today

Stocks rose Thursday, zigzagging from losses to gains throughout the session after a series of conflicting headlines on European sovereign debt. 

The Dow Jones Industrial Average, as quoted by WSJ.com, finished up 37.16 points, or 0.3%, to 11,541.78, while the Standard & Poor's 500-stock index added 5.51, or 0.5%, to 1,215.39. The Nasdaq Composite fell 5.42 points, or 0.2%, to 2598.62.

The blue-chip Dow's choppy intraday trading mirrored the measure's indirection over the past two weeks. The average has changed direction in each of the past 10 sessions, the longest streak of swings since the 11 sessions that ended May 19, 2009. How about Indonesia stock market today? Bisnis Indonesia reported stock recommendations from three brokerages:

e-Trading Securities:

Today, Jakarta Composite Index (JCI) may engulf correction. It is estimated to move within the range of 3,579-3,688. Several stocks to watch: JSMR, CFIN, and ROTI.

Minna Padi Investama:
Be careful on further correction at the end of this week. The index may test a support level at 3,591. Stocks to watch: JSMR, TLKM, and AMAG.

Sinarmas Sekuritas:
The index technically may continue its loses today and move within the range of 3,580-3,660 today. Several stocks to monitor: JSMR, PGAS, ROTI, and BBKP.

Disclosure: No position at the stock mentioned above.

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Central Omega to hold rights issue

PT Central Omega Resources Tbk is planning to raise Rp983.74 billion proceed from rights issue of 983.74 million new shares at Rp1,000 per share. The rights issue is scheduled in December this year.

According to the rights issue prospectus, every holder of one existing new share of Central Omega will entitle nine preemptive rights to buy new shares to be issued by the company. Each holder that exercises rights to buy 27 new shares will entitle one warrant series I.

Central Omega will use 50% of the proceed to set up participation into a new company that will be established after the rights issue. The new company will operate a smelter.

The company plans to use 30% of the proceed as additional capital expenditure for its subsidiary and the remaining will be allocated for working capital for itself and subsidiary.

Post rights issue, Central Omega will be 97.72% controlled by PT Jinsheng Mining, a company focusing on minerals trading such as zinc, copper, nickel, and iron. 

Jinsheng Mining is owned by Chen Wen Ping (40%), PT Danpac Resources Kalbar (30%), and Victory Light (30%). Danpac Resources is owned by Sencaka (50%) and Yoevan Wiraatmaja (50%), while Victory Light is owned by Noble Champion International Ltd.

Disclosure: No position at the stock mentioned above.

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Bumi Resources & Berau to merge?

PT Bumi Resources Tbk (BUMI) has declared that it doesn't has any plan to merge with PT Berau Coal Energy Tbk (BRAU).

According to Director Dileep Srivastava, as quoted by Kontan daily today, there is no intention for Bumi to merge with Berau Coal. "It is not true. We don't have any intention to merge with Berau," he said.

Telegraph daily yesterday reported that Bumi Plc, a London-based company that was founded by Nathaniel Rothschild, intends to set a merger for Bumi Resources and Berau Coal. The merger speculation emerged after Bumi Plc announced to scrap the takeover on 75% stake in PT Bumi Resources Minerals Tbk (BRMS). 

Telegraph reported that the marger is estimated to have value of 4 billion pound sterling. Bumi Plc currently is holding 29% stake in Bumi Resources and 85% stake in Berau Coal Energy.

 

Disclosure: No position at the stock mentioned above.

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Smartfren launches Rp500 bio MTN

CDMA-based operator PT Smartfren Telecom Tbk (FREN) has issued Rp500 billion medium term notes (MTN).

Antony Susilo, Director of Smartfren, as quoted by Kontan today, said the operator will use the proceed to refinance debt and the remaining is intended to meet operational expenditure or capital expenditure.

The notes, charging a 14% interest a year, will mature on November 30 2012. Smartfren issued Rp2 trillion convertible bonds in the first half.

Smartfren previously was controlled by PT Global Mediacom Tbk (Bimantara Citra). Howeber, Global Mediacom disposed its stakes in Smartfren to Jerash Investment.  As of June 2011, Smartfreen was crippled with a deficit of Rp4.65 trillion and a total debt of Rp9.79 trillion.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Several stock brokerages estimate that Jakarta Composite Index (JCI) may move in mixed position today. Here are stock recommendations provided by Bisnis Indonesia today: 

e-Trading Securities:

The JCI may move in mixed position within the range of 3,635-3,729. Several stocks to watch: KLBF, PGAS, and BUMI. 

Reliance Securities:

The index is estimated to move within the range of 3,567-3,705. Several stocks to monitor: BDMN, INCO, and ITMG.

Sinarmas Sekuritas:

The index today may move in mixed position within the range of 3,620-3,761. Several stocks to watch: ROTI, BMRI, ADRO, and BUMI.

Minna Padi Investama:

The JCI may positively move at a resistance level of 3,718 today.

Disclosure: No position at the stock mentioned above.

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Ancora grabs US$25 million loan

PT Ancora Indonesia Resources Tbk (OKAS), a resources and explosive maker that is founded by stellar figure investment banker Gita Wirjawan, has sealed a US$25 million loan facility from Standard Bank Plc.

The facility will be used by Ancora to underpin a proposed takeover on a coal miner PT Raja Kutai Baru Makmur.

Ancora Energy, parent company of OKAS, is a controlling shareholder of 58% stake in Raja Kutai. 

According to Director Aulia S. Oemar at OKAS, as quoted by Kontan daily today, the company will use US$3 million as working capital and the remaining is intended to proceed the acquisition.

Raja Kutai is a holder of coal mining permit on 8,500 hectares. So far, the company has explored 550 hectares. In a month, it sells 30,000 tons-50,000 tons.

Disclosure: No position at the stock mentioned above.

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UNTR closes Duta Sejahtera takeover

Coal contractor and heavy equipment supplier PT United Tractors Tbk (UNTR), through its coal miner subsidiary namely PT Tuah Turangga Agung, has completed a 60% acquisition on 60% stake in PT Duta Sejahtera worth US$11.5 million.

Corporate Secretary Sara K. Loebis at United Tractors said the closing was reached on October 14, allowing Tuah Turangga as the official owner of Duta Sejahtera. UNTR is now holding a coal concession in Central Kalimantan. It has used proceed from rights issue.  

UNTR, a subsidiary of Indonesia's largest auto maker and distributor, is scouting a coal reserves of 500 million tons within the next 3 years, creating opportunity from several takeovers. Nowadays, the company manages 250 million tons of coal reserves. 

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Shares rose sharply but failed to recapture steep losses in the previous session, as conflicting reports on Europe's debt crisis whipped the market around during Tuesday's final trading hour.

The Dow Jones Industrial Average, as quoted by WSJ.com, seesawed from steep losses to big gains in a volatile session before finishing up 180.05 points, or 1.6%, to 11,577.05. The rally came after the blue-chip index dropped 247 points Monday. The measure is up 6.1% this month and nearly flat for the year, off less than 0.01%.

The Standard & Poor's 500-stock index gained 24.52 points, or 2%, to 1225.38. Each of the index's 10 sectors rose, led higher by strong gains for financial and energy stocks. The technology-heavy Nasdaq Composite rose 42.51 points, or 1.6%, to 2657.43, its ninth gain in the last 11 sessions. How about Indonesia stock market today? Here are stock recommendations provided by Bisnis Indonesia.

e-Trading Securities:
Jakarta Composite Index (JCI) may be engulfed by further correction today and move within the range of 3,579-3,675. Several stocks to watch: STAR and UNVR.

Panin Sekuritas:
The JCI tends to swing with lowered possibility within the range of 3,570-3,680 today.

Minna Padi Investama:
The index is estimated to stay at a support level of 3,591 today. Stocks to monitor: ASII, BBNI, and GGRM.

Sinarmas Sekuritas:
The JCI technically tends to move lower in the range of 3,560-3,705 today. Stocks to watch: MYOR, GGRM, UNVR, and TLKM.

Disclosure: No position at the stock mentioned above.
 
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BRMS seals US$40.80 mio dividend

Noncoal miner PT Bumi Resources Minerals Tbk (BRMS), that is controlled by PT Bumi Resources Tbk (BUMI), today reports that its subdiary PT Multi Daerah Bersaing has obtained a US$40.80 million dividend from PT Newmont Nusa Tenggara.

Multi Daerah is 75% owned by Bumi Minerals. The dividend is based on Multi Daerah's 24% stake in Newmont.

CFO Yuanita Rohali at BRMS said about 80% of the dividend will be used to pay loan facility and interest expense to Credi Suisse. The remaining will be used to finance working capital requirements at Multi Daerah's level.

BRMS CEO Ken Farrell said despite the volatile market, the company is optimistic to deliver outstanding growth in both financial and production results.

"We are on track to commence first iron ore production from Bumi Mauritania concession early 2012. Our Gorontalo Minerals gold and copper projects will finalize its JORR reserve and resources estimate by end of 2012," he said.

Disclosure: No position at the stock mentioned above. 

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Adaro acquires Bukit Enim Energi

Coal miner PT Adaro Energy Tbk, via its subsidiary dubbed PT Alam Tri Abadi, today revealed a 46% stake takeover of a green field coal mining company PT Bukit Enim Energi for consideration price of US$46 million. 

In a press statement filed to Indonesia Stock Exchange today, Alam Tri has acquired Bukit Enim from Lucky Star Corporation, Oriental Holdings Ltd, and BrightPath Corporation.

Following takeover, Adaro Energy owns 61.04% stake in Bukit Enim, PT Pamapersada Nusantara owns 20%, PT Triputra Utama Selaras owns 13.92%, and PT Bumi Alam Sejahtera owns the remaining. Pamapersada is Indonesia's largest coal mining contractor and also subsidiary of PT United Tractors Tbk. Pama also is one of Adaro's most important and long standing contractor.

Bukit Enim is a coal mining company developing a greenfield coal project in Muara Enim, South Sumatra. Bukit Enim holds a mining permit granted in March 2001 for a period of 20 years covering an area of 11,130 hectares. 

The are contains a network of local roads, which complement Adaro's recent coal logistics acquisition in South Sumatra.

Disclosure: No position at the stock mentioned above.
 
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Bakrie finalizes US$500 mio debt

Bakrie Group, PT Bakrie&Brothers Tbk and Long Haul Holding, is finalizing a US$500 million of new loan facility from Glencore International, the world largest commodities trading house.

According to sources familiar with the deal, as quoted by Bisnis Indonesia, Bakrie Group will utilize the loan facility to settle some of its debt worth US$1.3 billion from a number of creditors arranged by Credit Suisse. 

"The facility will be used by Bakrie and Long Haul to settle some debt by end of October. The remaining will be refinanced," the sources said.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

After a heady two-week sprint that saw the Dow Jones Industrial Average jump 12% and return to positive territory for the year, investors got a dose of reality.

Dow Jones Industrial Average lost 247.49 points, or 2.1%, to 11,397.00, the biggest drop in 2 weeks. The decline, as quoted by Wall Street Journal, put the index back in the red for the year and was a reminder to some that many of the troubles that plagued the market over the summer have yet to be resolved.

Three of the engines behind the recent advance—a strengthening U.S. economy, robust company earnings and signs of progress on the European debt crisis—showed signs of petering out.

A key reading of U.S. manufacturing activity fell short of estimates Monday, prompting some economists to rethink their bullish growth assumptions for the third quarter of the year. How about Indonesia market today? Here are stock recommendations provided by Bisnis Indonesia: 

Panin Sekuritas:

Jakarta Composite Index (JCI) may test a long term's resistance at 3,751 and support level at 3,700. Several stocks to watch: BBNI, BJBR, PTPP, DILD, and BKSL. The index has entered oversold area.

Minna Padi Investama:

The JCI may move within the range of 3,718-3,837. Blue chips have already overbought. Several stocks to monitor: KIJA, BKSL, and ASRI.

Sinarmas Sekuritas:

The index technically tends to be mixed within the range of 3,647-3,768. Several stocks may suffer profit taking. Monitor some stocks such as BWPT, GZCO, INTA, and INDY.

e-Trading Securities:

Today, the JCI may move in a limited gain to test a resistance downtrend. The index may move within the range of 3,675-3,782 with several stocks to watch: ITMG, INCO, and DOID.

Disclosure: No position at the stock mentioned above.

 

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Bumi Plc drops BRMS takeover, CB off?

Bumi Plc, London-based company, finally today announced that the proposed takeover of 75% stake in noncoal company PT Bumi Resources Minerals Tbk (BRMS) won't proceed as uncertainty market situation. 

Referring to the announcement, will the proposed US$2.07 billion convertible bonds issuance be automatically ceased?

Prior to the announcement today, Indonesia's largest thermal coal exporter PT Bumi Resources Tbk (BUMI) for the secondly decided to delay extraordinary of shareholders meeting (EGM) to October 21 2011. In an official statement submitted to Indonesia Stock Exchange (IDX), Bumi Director Dileep Srivastava said the company intends to delay the EGM to October 21 from the previous schedule on September 26.

Dileep said the delay is a result of the additional agendas regarding to the proposed shares sale in its non-coal subsidiary, BRMS as required by the regulation of IX.E.2 about Material Transaction and the Change of Main business. Bumi will publish further announcement on the shares sale on September 19. 

Previously, Bumi intended to schedule the EGM on August 23 with two agendas, the shares sale of BRMS and the proposed shares buyback.

On June 10, Bumi Plc, previously dubbed Vallar Plc, announced a 75% stake acquisition of BRMS by Bumi Plc in return for US$2.07 billion convertible bonds (CB) to be issued by Bumi Plc with a 2% coupon and a £15.88 initial conversion price to Bumi Resources. The bonds are convertible into new Vallar voting ordinary shares.

The acquisition price of Rp850 per share represents a 21.9% premium to Bumi Minerals's 30 day average closing price of Rp697 per share to 27 May 2011.

The question is who will agree a 19% interest debt converted into 2% interest CBs with 17% spread? At the announcement published by Bumi Plc, the BRMS proposal is expected to complete in the third quarter of 2011 and will require approval of Bumi voting ordinary shareholders.  If the transaction is expected to complete in the third quarter, the question is why Bumi has secondly delayed the EGM? Is it just a strategy to cease the deal?  

Bumi Plc today dropped 2.35% to £7.48 per share and Bumi Resources rose 3.33% to Rp2,325 per share. BRMS fell 1.54% to Rp640 per share.

Disclosure: No position at the stock mentioned above.  

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BW Plantation to buy 15,000 ha land

Palm oil producer PT BW Plantation Tbk (BWPT) intends to acquire new land area of 10,000-15,000 hectares, adding its land bank to 103,000-108,000 hectares.

"Talks are in the final stage. We will complete the land acquisition next month," said Corporate Secretary Kelik Irwantono as quoted by Kontan today.

BWPT, that is controlled by Budiono Widodo family, requires additional land bank to expand its plantations business. Utilizing current land bank, the company's land bank will be running out in 2014. The company plans to add 10,000 hectares of new planting. By end of 2010, planted area reached 52,060 hectare, increased to 56,476 hectares by June this year. 

Disclosure: No position at the stock mentioned above.

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Bakrie in talks for new loan facility

PT Bakrie & Brothers Tbk (BNBR) announced yesterday that the company is finalizing a new loan facility from certain creditor which will be used to refinance its debt of US$597 million to Credit Suisse.

In an official press statement, Bakrie said the company is in talks to complete loan documentations, expecting a closing date before October 31. 

However, Bakrie hasn't disclose the size of the facility and the creditor. Few weeks ago, Reuters, quoting source, said Glencore International is in talks with Bakrie in a bid to channel US$800 million-US$900 million facility in return for a wider coal marketing agreement with PT Bumi Resources Tbk. 

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Indonesia stock market may engulf profit taking after 4 days consecutive gains before ending lower on Friday last week. Here are stock recommendations provided by several brokerages as quoted by Bisnis Indonesia daily today:

Sinarmas Sekuritas:

Jakarta Composite Index (JCI) technically tends to be mixed within the range of 3,600-3,710 today. Several stocks to watch: AALI, SMCB, ROTI, and CMNP. 

e-Trading Securities:

Today, the JCI may move within the range of 3,635-3,721 with several stocks to monitor: GJTL, CMNP, and SMCB. 

Panin Sekuritas:

The index may move in the range of 3,632-3,685 today. The pressure on the JCI may still happen today. External factors remain affect the JCI movement. 

Disclosure: No position at the stock mentioned above.

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INCO to pay US$0.01 interim dividend

Nickel miner PT International Nickel Indonesia Tbk (INCO) today announced a dividend interum of US$0.01 per share or US$100 million.The dividend has been approved of the company's board of commissioners. 

It is payable on November 21 to shareholders of record as of November 7 2011. In addition to the final dividend of last year paid in May 2011 of US$145 million, the interim dividend will bring a total dividend of US$245 million to INCO's shareholders.
This payment reflects a solit position and commitment of INCO to its shareholders and it is aligned with the growth plan to jack up the annual nickel production to 120,000 metric tons next year from 73,000 metric tons.

Disclosure: No position at the stock mentioned above.

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Glencore, Bakrie near US$900 m loan deal

Glencore International AG, the world's biggest diversified commodities trader, is nearing a deal to lend US$800 (508.68 pounds)-US$900 million to Indonesia's Bakrie Group to help it refinance debt of US$1.35 billion and stave off a potential default, sources said.

In return, as quoted by Reuters, Glencore will be given additional marketing rights on coal produced by Bakrie-controlled Bumi Plc (BUMIP.L) and the loan will be backed by part of the Bakrie Group's 47 percent stake in the coal miner, the sources with knowledge of the deal said on Thursday.

Shares in Bumi Plc, a London-listed venture between the Bakries and financier Nat Rothschild, rose as much as 6 percent on Thursday. The stock's sharp fall, a drop of 33% since the end of June, had triggered the mandatory repayment of the one-year US$1.35 billion loan that had been due to mature in March 2012.

Jakarta-listed PT Bumi Resources Tbk, Asia's largest thermal coal exporter, jumped as much as 5.8 percent on hopes the two sides were closing in on a deal.

Glencore will have the option of turning the loan into an equity stake in Bumi Plc, which at current prices has a market capitalisation of US$2 billion, if Bakrie cannot repay the debt, one source said. The sources declined to be identified because the negotiations are private.

The marketing rights could be extended to other Bakrie non-coal assets, such as zinc and copper from PT Bumi Resources Minerals Tbk (BRMS), another Bakrie-controlled company, one of the sources said. Several Glencore executives are in Jakarta to help close the deal, which one source familiar with the situation said could be announced as early as Friday.

Glencore has been tipped as a frontrunner since news of the refinancing talks emerged last week, due to its existing relationship with the Bakrie family and coal marketing deals. 

But the Bakrie family is also holding talks with other potential backers, including trader Vitol S.A., which since its entry into the coal market in 2005 has been keen to find sizeable, high-quality mines and has already signed long-term offtake deals with Indonesian producers including Bayan Resources (BYAN).

The two trading houses are holding separate talks, two of the sources said, adding Vitol -- whose negotiations are being led by a former senior Glencore coal executive -- was fighting hard to secure the deal even as its rival appeared to close in on the prize.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

The Dow Jones Industrial Average fell 40.72 points, or 0.4%, to 11478.13, after dropping as much as 141 points on Thursday. It marked the Dow's second drop in the last three sessions and biggest decline since Oct. 3.

The blue-chip index still is up 5.2% this month and briefly moved this week into positive territory for the year before pulling back. It is down 0.9% this year. The Standard & Poor's 500-stock index eased 3.59 points, or 0.3%, to 1203.66. Financial and industrial stocks registered the biggest declines, while technology stocks rose.

How about Indonesia stock market today? Bisnis Indonesia provided recommendations from stock brokerages:

Panin Sekuritas:

Jakarta Composite Index (JCI) today may be mixed within the range of support-resistance level at 3,625-3,730. The JCI continued its gain yesterday. However, the movement of blue-chips were limited.

e-Trading Securities:

The JCI may fluctuate with lowered possibility. The index is estimated to move within the range of 3,620-3,714 with several stocks to watch: ISAT, JPFA, and EXCL.

Minna Padi Investama:

The index today may move in a limited range of 3,623-3,718. Be careful on profit taking after several rallies. Several stocks to monitor: ANTM, TINS, and BDMN.

Sinarmas Sekuritas:

Today, the JCI technically tends to move in a limited range of 3,605-3,690 with a possible profit taking. Several stocks to watch: PTBA, SMGR, ISAT, and BWPT. 

Disclosure: No position at the stock mentioned above.

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Bakrieland seeks Rp1 trio financing

Property developer PT Bakrieland Development Tbk (ELTY) is seeking a Rp500 billion-Rp1 trillion financing, a buffer facility to refinance debt and working capital.

The company will seek financing from both local and foreign banks. "We have not decided the size of bond and bank loan combination," said Bakrieland President Director Hiramsyah S. Thaib as quoted by Kontan daily today.

According to him, Bakrieland will use the facility to settle its debt next year. The company needs Rp500 billion for the purpose. 

Bakrieland is also considering to dispose its toll road unit PT Bakrie Toll with a proceed target of Rp2 trillion. 

Bakrie Toll is considering the IPO or private placement. "The share sale is estimated in the first half of 2012."

Disclosure: No position at the stock mentioned above.

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Sinarmas sets RODA tender offer

Pikko Group has mandated PT Sinarmas Sekuritas as a brokerage that helps conducting a tender offer for the remaining shares in PT Royal Oak Development Tbk (RODA).

In an official announcement yesterday, Pikko Land said Sinarmas Sekuritas will hold administrative tasks of the tender offer, including the settlement.

Pikko Land, founded in British Virgin Island, intends to hold the tender offer of 4.3 billion shares or 31.99% stake in Royal Oak, following a 68.01% take over.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Stocks finished with strong gains amid optimism about plans to recapitalize euro-zone banks. The Dow Jones Industrial Average, as reported by Wall Street Journal, advanced 102.55 points, or 0.9%, at 11,518.85. 

The Standard & Poor's 500-stock index climbed 11.71 points, or 1%, to 1,207.25, and the Nasdaq Composite advanced 21.70 points, or 0.8%, to 2,604.73. With the gains, the Dow is up 5.6% this month, the fifth-best start to October since 1,900, and is down just 0.5% on the year. During Wednesday's session, the Dow rose 209 points, putting it into positive territory for the year, before dropping in the final hour. How about Indonesia market today?

e-Trading Securities:

Today, Jakarta Composite Index (JCI) is estimated to move mixed within the range of 3,579-3,673. The indicator has shown overbought and be careful on profit taking. Several stocks to watch: TINS, ANTM, and BUMI.

Sinarmas Sekuritas:

Technically, the JCI tends to move within the range of 3,590-3,690 today. Several stocks to watch: UNTR, BJBR, JPFA, and BSDE.

Minna Padi Investama:

The index is estimated to move in the range of 3,591-3,706 today. Massive capital inflow may bring index to rise. Several stocks to monitor: BDMN, PGAS, and PTBA. 

Panin Sekuritas:

The index tends to move within the range of 3,593-3,659 today.  Yesterday, the index continued its gain, underpinned by domestic's economic fundamental. 

Disclosure: No position at the stock mentioned above.

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Adaro buys Servo Meda Rp200 bio

PT Adaro Energy Tbk (ADRO)  announced that its subsidiary PT Alam Tri Abadi (ATI), acquired 35% stake in PT Servo Meda Sejahtera (SMS) for Rp200 billion from PT Servo Infrastructure (SI). 

Garibaldi Thohir, CEO of Adaro Energy, in a morning note published by PT Mandiri Sekuritas today, said that it is part of  the company’s strategy in developing coal mining asset in South Sumatra, which creating long term sustainable complete integrated value chain.

Who is Servo? 

Servo Meda is a privately integrated coal mining services company that established in the idea of developing transportation solution to South Sumatra region. Through its subsidiary, PT Servo Lintas Raya, Servo develop and construct 228 km haul road in South Sumatera for coal transportation that will connect the mines in Lahat, Muara Enim and Banyuasin regencies with terminal in Tanjung Lago at Banyuasin river. 

The 1st construction stage has started since October 2008 and It has a capacity target of 50 million tons of coal in the fourth or 50 years of its operation. 

Servo also owns coal mines in Lahat regency including PT Batubara Lahat, PT Bumi Merapi Energy and PT Bara Alam Sumatera which also have legal issue with PTBA. It produced about 3 million tons of coal per year. Servo also has coal mines in Lokpaikat and Bungur in South Kalimantan with a total production 

of 2 million tons of coal per year.

"We expect It is part of series transaction with the recent 75% stake coal asset acquisition of Mustika Indah Permai (MIP). Altogether Adaro coupling local partners in Lahat region to strengthen its position to leverage its inorganic growth by unlocking abundant “coal treasure” in South Sumatra."
However it remains a long time story to talk about the development of their projects since it is still in a legal case with PTBA which most of their concessions are halted in the meantime waiting for final decision from supreme court. 

Please be mindful, with recent alert of La Nina weather risk from Australia’s Berau of Meteorology that is expected to strengthen earlier than expected, it will be challenging issue for Adaro’s Tutupan mine pit which might affect its mining operation if not well anticipated. "Currently we have Buy rating on ADRO. It trades at 9.0x PER12F. "

Disclosure: No position at the stock mentioned above.  

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Bailout for Bakrie & Bumi sale

At least three potential bidders, Glencore International AG, Texas Pacific Group-backed Northstar Pacific Partners, and commodities trading firm Vitol, are in talks with Bakrie Group in a bid to bailout the group in exchange for equity in Bumi Plc.

As written in a morning note distributed by PT Mandiri Sekuritas, citing Reuters, it is also reported that Glencore is pressing the Bakrie Group for more right to sell and option to buy shares in exchange for refinancing the US$1.34bn loan, which might take in form of debt-equity like or convertible bond.

Who is Vitol? – Vitol group is an energy trading company founded in Rotterdam in 1966. Along with Glencore and Trafigura, it is one of the world largest crude oil traders. But for the last 5 years, Vitol ha been aggressively growing presence in coal sector. In 2010 Vitol has booked a revenue of US$195 billion.

Mandiri Sekuritas said it is not clear yet  wether the Bakries would agree to lose control of its most valuable asset. The current structure, Bakrie hold voting rights about 30% in Bumi Plc. 

"Albeit the family has sold asset in the past, we still expect that the Group will be looking to structure a financing deal that retain control of its asset while addressing the margin call their loan. Please be mindful that without strong position of local partner that could help navigate local politics, the foreign investors will face difficulty in running the business especially in license renewals of the two key assets, Arutmin and KPC." Given long and strong relationship between Glencore and Bakrie’s Group, Glencore might be the most likely candidate to win the bailout mission.

The question is are they really in tight competition to bailout Bakrie Group? In fact, Bumi Plc is still below 8.5 pound sterling, the minimum price to top up the debt collateral.
What is happening right now with Bakrie Group is similar with the experience in 2008. Please check all news in 2008. 

There were so many articles about bailout to Bakrie Group. TPG and Northstar were among investors who would give bailout. But, once Bakrie Group's shares price goes up, surpassing the top up level, the story will dissapear.

In 2006, Bakrie Group suddently chased the sale of Bumi Resources to PT Borneo Lumbung Energi Tbk, owned by Indonesian rich businessman Samin Tan, as unmatched price. 

Bakrie Group believes stocks are currency. It is hard to believe that Bakrie Group will lose controlling stake in Bumi Plc or Bumi Resources. My suggestion, don't dissolve yourself into the bailout progress. I do believe Bakrie will find an exit strategy without losing Bumi Resources, the most precious asset for Bakrie. 

 
Disclosure: No position at the stock mentioned above.
 
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Solusi Tunas to add 100 towers

Newly listed company PT Solusi Tunas Pratama Tbk is ready to add 100 telecommunication towers with an investment of Rp100 billion. 

President Director Nobel Tanihaha at the company said the operator is underway to construct 100 towers in Jabodetabek. He expects the roll out will be completed by end of this year.

"If we can't realize acquisition, at least we still have additional 100 towers," he said during a trading debut at Indonesia Stock Exchange yesterday.  

The additional 100 towers are expected to be a growth engine of the company's revenue next year. One tower is available for three to four tenants. With 100 towers, Solusi Tunas could get 300-400 tenants.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Dow Jones Industrial Average closed down a day after the blue-chip index scored its biggest gain in 2 months. The measure shed 16.88 points, or 0.2%, to 11416.30, after a 330-point surge the previous session. 

Stocks, as quoted by Wall Street Journal, opened in negative territory as investors awaited a bailout vote in Slovakia, which is the 17th and final country to act on an expansion of the euro zone's rescue fund. The deliberations dragged out past the close of U.S. trading, which helped keep stocks in a tight trading range. Parliament rejected the measure.

The Standard & Poor's 500-stock index eked out a gain of 0.65 point, or 0.05%, to 1195.54. The Nasdaq Composite added 16.98 points, or 0.7%, to 2583.03.

The relatively muted action snapped a streak of 55 sessions during which the Dow swung at least 100 points on an intraday basis. What about Indonesia market today?

Minna Padi Investama:

Jakarta Composite Index (JCI) may move and close to a resistance level of 3,591. Several stocks to watch: HRUM, PGAS, and PTBA.

Sinarmas Sekuritas:

The JCI technically may move in mixed position within the range of 3,488-3,570 today. Several stocks to watch: CPIN, ROTI, INTP, and HRUM.

e-Trading Securities:

Watch action of profit taking. The index may move within the range of 3,490-3,579 with several stocks to monitor: PTBA, JPFA, and HRUM.

Panin Sekuritas:

The strength to drive the JCI higher is restrained today. The stock benchmark may move within the range of 3,490-3,580.

Disclosure: No position at the stock mentioned above.

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Solusi Tunas jumps 11% on IPO debut

PT Solusi Tunas Pratama Tbk, a telecommunication tower provider, today is stable at Rp3,400 during its debut at Indonesia Stock Exchange. The secondary price reached Rp3,750 a share, or 11% increase during the initial trading. 

Solusi Pratama is the 17th publicly listed companies this year. During the IPO, the tower provider secured Rp340 billion by selling 100 million shares of 16.7% of its enlarged capital. PT Ciptadana Securities is the IPO underwriter. About 50% of the proceed will be used to expand business, including take over purposes. 

Disclosure: No position at the stock mentioned above.  

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SMR Utama IPO debut jumps 8.33%

PT SMR Utama Tbk yesterday ended its debut at Indonesia Stock Exchange at a 8.33% higher to Rp650 a share from its primary level at Rp600.

Reza Priyambada, Managing Research of PT Indosurya Asset Management, said the higher closing level was driven by investor appetite to seek gain from the IPO stock. The increase was also inline with Jakarta Composite Index that slightly increase 0.74% to 3,451.08.

The company sold 500 million of new shares or 33.33% of its enlarged capital to the public investor. In total, SMR Utama will gran a proceed of Rp300 billion from the IPO.

SMR Utama will use Rp250 billion of the proceed for additional capital paid in in PT Soe Makmur Resources (SMR). 

Post the IPO, SMR Utama will be controlled by PT Dana Hayati Wisesa with 13.33%, PT Alam Abadi Resources with 53.33%, and public shareholders with 33.33%. PT Andalan Artha Advisindo Sekuritas (AAA) is the IPO's lead underwriter.

Disclosure: No position at the stock mentioned above.

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Fajar Surya seeks US$30 mio loan

Paper maker PT Fajar Surya Wisesa Tbk (FASW) is seeking a US$30 million of new loan facility next year aimed to finance modification of its paper machine facility.

Director Hadi Rebowo Ongkowijoyo at the company said the company hasn't determined the structure of the facility.

"It hasn't yet decided whether we will seek onshore or offshore facilities," he said as quoted by Bisnis Indonesia today.

Per June 2011, Fajar Surya's debt to equity ratio was 1.57 times with a total debt of Rp565.47 billion.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

The Dow Jones Industrial Average, as quoted by Wall Street Journal,  jumped 330.06 points, or almost 3%, to 11433.18, its biggest one-day surge in two months. The gains add to a powerful rally that began in the final hour of trading Tuesday last week and has pushed the Dow up more than 1000 points in less than 5 days.

Monday's gains came after German and French leaders said they were determined to present a "comprehensive package" by the end of October that would include a plan to recapitalize euro-zone banks as needed and address the Continent's debt crisis. 

Europe's stock markets soared. Germany's DAX index gained 3%, while France's CAC-40 popped 2.1%. How about Indonesia market today?

Minna Padi Investama:

Jakarta Composite Index (JCI) today may swing within the range of 3,409-3,527. Several stocks to watch: KIJA, LSIP, and BMRI. The JCI yesterday inched up 0.74% to 3,451.08.

e-Trading Securities:

The JCI may move in mixed position with uptrend possibility in the range of 3,430-3,513. Several stocks to watch: LSIP, BMRI, and KIJA.

Sinarmas Sekuritas:

The index technically move in mixed position with higher chance within the range of 3,430-3,525. Several stocks to watch: BMRI, BBRI, UNTR, and KLBF. 

Disclosure: No position at the stock mentioned above.

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Glencore, suitor for Bumi Plc?

The largest commodities trader in the world, Glencore International Plc, is considering an opportunity to acquire a minority stake in London-based Bumi Plc, which has access to nearly 80 million tons of coal production currently controlled by Bakrie family.

PT Bakrie & Brothers, that owns 47% stake in Bumi Plc, breached two conditions in a US$1.35 billion loan agreement obtained from Credit Suiise AG and a group of lenders. 

As a result, Bakrie & Brothers, as quoted by Bisnis Indonesia today, is in a default position. However, Bakrie management has confirmed that the company is not in such position. The company is considering to restructure or pay the loan facility of US$597 million that will mature in March 2012. 

An analyst at Liberum Capital Ltd said the potential sale of Bumi Plc has drawn interest from several investors. "Glencore is the closest suitor, regarding to the relations with Bakrie Group.

Disclosure: No position at the stock mentioned above.

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Adaro signs agreement with PLN

Indonesia's coal miner PT Adaro Energy Tbk and other members of consortium tied up into PT Bhimasena Power Indonesia has executed a long term power purchase agreement (PPA) with the state-controlled PT Perusahaan Listrik Negara (PLN) this afternoon.

The PPA includes the construction of a coal-fired power plant with a total capacity of 2,000 MW in Central Java (Central Java Power Power Plant) and a 25-year supply of electricity to PLN. The total project cost is US$4 billion. 

Bhimasena is a company that is established by Electric Power Development CO Ltd, PT Adaro Power, subsidiary of Adaro Energy, and Itochu Corporation. In addition to the PPA, a guarantee agreement was also signed by and among the Government of Indonesia, PT Penjaminan Infrastruktur Indonesia, and Bhimasena. 

J-Power-Adaro-Itochu consortium established Bhimasena, in July 2011 to  build, own and operate a coal-fired power plant, which would be amongst the largest in Asia. 

Adaro is an integrated coal mining and energy company, which currently operates the largest single-site coal mine in the Southern hemisphere and is the largest coal supplier to the Indonesian domestic market. In 2010, ADARO produced and sold 42.2 million tones and 43.8 million tonnes respectively.  

Disclosure: No position at the stock mentioned above.

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Bumi Plc pledged at 8.5 pound sterling

PT Bakrie & Brothers Tbk (BNBR) and its parent Long Haul Holdings Ltd have pledged 50 million shares of London-based Bumi Plc to its creditors at 8.5 pound sterling, indicating the lowest market level before they have to top up when Bumi Plc shares drops.   

Bakrie Group, as reported by Bisnis Indonesia today, pledged the shares to a group of lenders when it secured US$1.3 billion loan facility from Credit Suisse, Singapore in early March this year.  Of the total debt, BNBR took US$601.75 million and the remaining went to Long Haul. 

Bakrie's CFO Eddy Soeparno said the debt will due next year. But, Financial Times reported yesterday that the debt will mature in March next year. Bakrie family is also considering selling off assets to repay a US$1.34 billion loan to a syndicate led by Credit Suisse, people familiar with the matter said.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Dow Jones Industrial Average finished up 183.38 points, or 1.7%, to 11,123.33 on Thursday, closing near session highs. The blue-chip index has gained 468.03 points, or 4.4%, during its winning streak, marking the biggest 3-day point and percentage gain since Aug. 24. It is up 1.9% this week and has risen in seven out of the past 10 trading days.

The Standard & Poor's 500-stock index, as quoted by Wall Street rose 20.94 points, or 1.8%, to 1,164.97. The technology-oriented Nasdaq Composite jumped 46.31 points, or 1.9%, to 2,506.82. What about Indonesia market today?

Panin Sekuritas:

Jakarta Composite Index (JCI) may move within the range of 3,360-3,479. The index gain was mainly contributed by the lowered tension of debt crisis in European countries and positively sign of US economic indicators.

Sinarmas Sekuritas:

The JCI may record further gains and move within the range of 3,400-3,490. Several stocks to watch: ASII, BMRI, BBRI, and INDF.

Minna Padi Investama:

The JCI is estimated to continue its gain, anticipating the positive report of the third quarter result. Several stocks to monitor: BBRI, KLBF, and LSIP.

Disclosure: No position at the stock mentioned above.

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Bakrie considers asset sale

Indonesia’s influential Bakrie family, the largest shareholder in London-listed miner Bumi, is considering selling off assets to repay a US$1.34 billion loan to a syndicate led by Credit Suisse, people familiar with the matter said.
The family’s most valuable asset, quoted by Financial Times yesterday, is its 47% stake in Bumi, raising the possibility of a sell-down and the introduction of new investors wanting exposure to Indonesia’s most lucrative coal mines.
Repayment on the Bakries’ US$1.3 billion loan, which is due in March 2012, has been brought forward because the market value of the family’s Bumi stake is no longer enough to cover it. The Bakries pledged the entirety of their Bumi shareholding as collateral for the loan.
Shares in Bumi – founded as Vallar last year by UK financier Nat Rothschild – rose 3% to 731½p on Thursday afternoon but remained below the 850p trigger point for the loan call. They have fallen sharply from their highs of £14 in April.
A representative for the Bakrie family could not be reached for comment. A group of 10 lenders headed by Credit Suisse has
engaged in “fairly calm dialogue and discussion with the Bakrie family about how to resolve this”, said a person with direct knowledge of the discussions. Most of the investors are hedge funds. The investors are seeking a pay-out of US$100 million or US$200 million, “within very short notice”, with total repayment expected by the end of 2011 or in the first quarter of 2012, the person said.
“Of course they don’t have US$1.34 billion in their account,” the person said. “The most important thing is they have extensive Vallar-Bumi assets and have shown willingness to divest assets. Time and again the Bakrie family has shown willingness to address liquidity issues with asset sales.”
Bakrie’s ventures span palm oil plantations, property, telecommunications and television broadcasters. But none of the assets, apart from the Bumi stake, appears to be worth enough to cover the Credit Suisse loan. The global market sell-off that started in August has hit emerging-market shares with force, sinking the value of listed investments such as Bakrie Sumatera Plantations.
Shares in this Jakarta-listed palm oil company have fallen 38% since August 1. Its market value is now Rp3.3 trillion (US$375 million). But as with the telecoms company and others, the Bakries hold only a minority stake in Bakrie Sumatera Plantations, according to public filings.
A sell-down of Bumi would chip away at the family’s crown jewel: a 65% stake in Kaltim Prima Coal (KPC), Indonesia’s largest  coalmine which is controlled by Bumi’s Indonesian affiliate company. Under financial stress in 2008 the Bakries sold off a 30% stake in KPC to India’s Tata.
“No one believes any more that they will be able to service the debt [without selling assets],” an analyst in Jakarta said.
A banker in London commented on the possibility of buyers taking 20% of Bumi off the Bakries. “This is a perfect play for someone trying to get a premium coal division just by writing a cheque. It’s great for the Chinese. It’s great for the Indians who are desperately short of thermal coal.” 

Disclosure: No position at the stock mentioned above.

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Bakrie seals approval to hold quasi

An investment parent company of Bumi Plc, PT Bakrie & Brothers Tbk, today has sealed an agreement from its shareholders in a bid to hold a quasi reorganization. The quasi, an accounting measurement, that is aimed to take out the company's deficit of Rp34.9 trillion. Bakrie & Brothers has obtained the approval today.

President Director Bobby Gafur Umar said the quasi will allow its shareholders to get dividend in the short term. "There is no disadvantage for any parties. The quasi will help company to reflect its fair value without burdening deficit," he said. 

The quasi will be held in three stages. First, the company will revaluate its assets, liabilities, and subsidiaries. Second, the measurement will reduce its paid in capital by decreasing its nominal price proportionally. Third, it will set off deficit capital with the deviation of assets and liabilities revaluation, and balance of capital paid in. 

Nominal price of A series share will be downgraded to Rp2,850 from Rp5,000, B series to Rp399 from Rp700, and C series to Rp104 from Rp200. 

Disclosure: No position at the stock mentioned above.

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Astra Agro 9M CPO output rises 19.8%

During January – September 2011, palm oil producer PT Astra Agro Lestari Tbk (AALI) produced 930,827 tons CPO, an increase of 19.8% compared to the same period last year, totaling 777,210 tons. 

In an announcement filed to Indonesia Stock Exchange, the rise in CPO production during this period was mainly supported by an increase in fresh fruit bunch (FFB) production of 13.5%, from 3.02 million tons last year to 3.43 million tons.  As the biggest contributor, Sumatra region produced 1.45 million tons FFB or approximately 42.3% of the total FFB production.  Meanwhile, contribution of Kalimantan and Sulawesi region in the first nine months of  were 37.8% and 19.9% respectively. 

Disclosure: No position at the stock mentioned above.

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Astra sets US$1.5 bio capex in 2012

Indonesia's largest auto manufacturer and distributor PT Astra International Tbk (ASII) is aiming to expand its business and put a huge capital expenditure of US$1.5 billion next year. The capex will be utilized to expand its business in the various sectors, said Gunawan Geniushardja, Astra International Director, as quoted by Kontan today.

Astra will use the largest portion of the spending to boost infrastructure business, counting 40% of the total. The expansion is held via its subsidiary such as PT Astratel Nusantara, which is currently developing three toll road concessions.

Disclosure: No position at the stock mentioned above.

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Bakrie restructures US$1.3 bio debt

Bakrie Group, PT Bakrie & Brothers Tbk (BNBR) and its parent Long Haul Holdings Ltd, is underway in talks with its creditor in a bid to restructure a US$1.34 billion debt both obtained in early March from Credit Suisse AG, Singapore.

In an official statement to London Stock Exchange yesterday, Bumi Plc revealed that besides a possible restructuring, Bakrie Group is seeking a possible action to pay the debt facility. However, still, there is no clear information when and how the group to settle the debt.

"We will make further announcement soon the negotiation comes with certain result," Bumi Plc management said. 

The company has not declared at what price the debt is pledged with Bumi Plc shares despite a 44.06% drop in Bumi Plc shares price at London market. Have Bakrie Group put more money and shares to pledge just to set off the shares drop? Is this situation similar with 2008 when Bakrie Group suffered from repo?

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Blue-chip stocks finished with triple-digit gains for a second day as investors weighed signs of improvement in the U.S. economy and the prospects for stabilizing Europe's banks.

The Dow Jones Industrial Average, as reported by Wall Street Journal, gained 131.24 points, or 1.2%, to 10939.95. Materials and energy stocks led the gains, as the price of crude oil enjoyed its biggest one-day gain in 5 months. Technology was another bright spot, lifting the Nasdaq Composite 55.69 points, or 2.3%, to 2460.51. The Standard & Poor's 500-stock index rose 20.09 points, or 1.8% to 1144.04. What about Indonesia stock market today?

Panin Sekuritas:

Jakarta Composite Index (JCI) is still mixed today and shadowed by movement of the regional stock markets. The support and resistance level is within 3,220-3,329.

Minna Padi Investama:

The JCI today is estimated to continue its gain with a support level at 3,217. Please monitor blue chips that suffered massive sell-off such as ASII, BBRI, and INDF.

Sinarmas Sekuritas:

The JCI technically may volatile and tend to increase within the range of 3,217-3,320. Several stocks to watch: MYOR, ICBP, GGRM, and BUMI.

Disclosure: No position at the stock mentioned above.

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Sumber Alfaria to hold rights issue

PT Sumber Alfaria Trijaya Tbk today announces a 343.17 million new shares issuance or 10% of its enlarged capital without preemptive rights within 2 years in a bid to improve its capital structure and pay its debt.

Sumber Alfaria has mandated PT Danpac Sekuritas as its financial adviser. Sumber Alfaria is seeking an approval for the non-preemptive rights issue on October 20 2011.

Sumber Alfaria is still controlled by stellar businessman in the retail industry namely Djoko Susanto through his vehicle PT Sigmantara Alfindo that currently holds 58.79% stake.

In the first half of this year, Sigmantara Alfaria posted Rp8.34 trillion revenue, Rp119.25 billion operating profit, and Rp64.44 billion.

Disclosure: No position at the stock mentioned above.

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Trikomsel to lift up free float

Cellular phone distributor PT Trikomsel Oke Tbk (TRIO) is aiming to enlarge its shares free float next year.

In an official statement submitted to Indonesia Stock Exchange yesterday, Trikomsel Corporate Secretary Juliana Samudro said the company is underway to hold a feasibility study for such corporate action. According to Juliana, to increase its free float, the company will increase its capital structure, which is in line with the regulation. The distributor will use the proceed obtained from the corporate action to support its business expansion. 

Referring to the disclosure, Trikomsel seems to have a plan to raise capital through rights issue. But, the company hasn't clearly declared the plan. 

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Stocks rallied in the final hour of trading after a report that European Union finance ministers are discussing ways to recapitalize the Continent's banks.

The Dow Jones Industrial Average, as reported by Wall Street Journal, rose 153.41 points, or 1.4%, to 10,808.71, after falling as much as 251 points. 

The blue-chip index was down more than 200 points in the last hour of trading before turning positive and zooming higher in the final minutes of action. The gains come after the Dow had fallen 498.68 points over the previous two trading days and closed Monday at its lowest level in more than a year. How about Indonesia stock market today? 

Reliance Securities:

Jakarta Composite Index (JCI) may continue its losses and move in a long term of bearish trend. The closest support level is 3,217 with resistance level of 3,314.

e-Trading Securities:

The JCI may face further corrections and try to test the support level of 3,217 and may move within the range of 3,217-3,316. Several stocks to watch: KLBF, MYOR, and CPIN. 

Panin Sekuritas:

The JCI is estimated to test the support level of 3,217, while resistance is still at 3,310. The market is still volatile with lowered tension of sell-off. 

Disclosure: No position at the stock mentioned above.

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