June 20-24, TA/FA for IndoAgri

TA for IndoAgri,

Trend - Down
Momentum - Oversold
Volume - below Average
Candlestick - NA
Resistance - 1.62
Support - 1.51

This IndoAgri is in prolonged downtrend coupled with poor valuation of it subsidiary IPO called "SIMP". Since the IPO of SIMP, SIMP share has declined -8.8% as compared to IndoAgri of 13.20%.
A result of imbalance Fundemental PEx valuation coupled with poor market sentiment, this stock has good chance for SHORT or borrow scripts - to SELL.

June 20-24, FA for IndoAgri,

PE - 10x (If compare to GoldenAgri at 4.8X and FirstRes (11x)
NAV - 1.15
Price to Book Ratio - x1.33
EPS - 0.14497
Yield - 0%

From Fundamental Analysis, this stock has no dividend yield and we can use Asset Approach to quickly value it's pricing. As long as it doesn't fall below or equal to NAV at S$1.15, this stock has no safety net for investor.



Analysts News update,

18 GMT [Dow Jones] STOCK CALL: CLSA initiates Indofood Agri Resources (5JS.SG) at Sell with a S$1.31 target price, implying 16.6% downside and recommends switching to Golden Agri-Resources (E5H.SG). After the recent IPO of Indofood's subsidiary PT Salim Ivomas Pratama (SIMP.JK), which means all operating assets are now also listed in Indonesia, the house says "it is difficult to see how SIMP's IPO is value-accretive for IFAR. New shares issued at IDR1,100 imply a 31% discount to IFAR at pricing; IFAR shares have fallen 20% since, while SIMP has risen 11% post-IPO, effectively representing a transfer of value from IFAR to SIMP." It adds, with IFAR still trading at a premium to SIMP, IFAR selling looks to continue as SIMP offers the same assets at lower valuations. The house says "we anticipate further stock de-rating based on a holding company discount." It notes Indofood's share price has corrected 45% YTD, and is trading at 12.2X calendar 2012 vs 10.8X for Golden Agri. Shares closed down 2.5% at S$1.57. (matthew.allen@dowjones.com)