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I've always been a great believer in the Indonesian economy. I guess I have an advantage since I do plenty of business with Indonesians. My dealers would bring me to the malls for meals and shopping whenever I visit. I like what I saw. From late last year, I kept adding to my position in LMIR .
I traded along the way up from the lows and have reached a point where I have decided I would be keeping my remaining LMIR units till the price next peaks. Even at a higher average price of 39c now, my investment in LMIR will yield 13.3% p.a. (if the dpu remains unchanged). As of now, with very low gearing, there is no need for a cash call from LMIR. This remains one of my best investments in my portfolio currently.
I actually bought some at 18c but didn't dare to buy any at 16.5c. That was a time when we couldn't see the bottom yet. I bought some based on FA. Shortly after, prices turned up.
I was buying shares in LMIR, HWT, Golden Agri, Kep Corp, SPH and a few other counters then. I got SPH at $2.80 too but didn't dare buy more when it went to $2.60+. Everything I bought then, I bought based on FA. TA was just so bearish. I did explain my strategy to a close circle of friends and family.
They were very kind not to mention it but I'm sure most thought I was crazy. hehehe...
People keep talking about the little tapped domestic market in China. With Indonesia at our doorsteps, I feel it would be a big mistake not to look at Indonesia's domestic market. LMIR is a good place to park your money as the middle class in Indonesia increases in size.
The current price of LMIR is still reasonable. From a FA perspective, the fair value I give to LMIR is about 70c.
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