HRUM IJ: Will soon to Rp10,000 - Trading Consultant | Securities | Research

Thursday 23 Feb 2012

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Tuesday, 01 March 2011 03:50

TRADING STRATEGY
HRUM IJ: Will soon to Rp10,000

Summary. We like this stock from our technical view using the AstronacciTM Market Timing and its business model. Currently, the coal is traded at US$131.71/mertric ton and it will boost HRUM IJ revenue. The robust coal price is strongly impact to this stock than the other since we note that they sell 75% coal production based on the floating coal price, not a future contract (From our conversation with the corporate investor relation), while the other coal companies has a future coal contract.

From the technical analysis view, the trend will be back to bullish when this stock rises above Rp8,250. Personally, I expect this stock will reach Rp10,000 around Jun – Jul 11. It will be moving between Rp8,250 and Rp8,500 for the next few days. On the other hands, the higher volume and trading frequency are a good reason to maintain BUY. The price moves in range around Rp200-300 every day which offer scalping opportunity.

Based on the Astronacci^TM Market Timing, this stock will remain positive until 7 Mar 11. Technically, after the price has closed above Rp8,250, yesterday, the bullish is likely in control. When it could runs above it, the next target will be around Rp8,600-8,700.
Even though the market caps is relatively small, this stock is a great choice for mid to long-term investors or even traders, and it might be an alternative choice instead of the most favorite coal stock in Indonesia, Bumi Resources (BUMI IJ).

How to trade?
BUY at Rp8,250-8,300 with an expected target price at Rp10,000 and stop loss at 8,000.

That’s all for today guys, lets trade with Astronacci^TM Market Timing. To get more information about market timing, visit UOBKayHian Securities Indonesia.

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Analyst Certification:

The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is, or, will be, directly, indirectlyrelated to the specific recommendations or views expressed in the report.

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