WEBODIGY Business & Finance Journal

PT Bank Mandiri Tbk (BMRI) could make a target market share of 17-20 per cent of the total volume of exports and imports in Indonesia next year. Certainty is obtained after the Bank Mandiri received trade financing facility (trade finance programs Facilitation / TFFP) from the Asian Development Bank’s (ADB).

“Bank Mandiri will target could make a market share of 17-20 per cent of the total volume of exports and imports of Indonesia. Moreover, this loan facility will not be eroded the capital adequacy ratio (Capital Adequacy Ratio / CAR) companies,” explained Director of Treasury and International Banking Bank independent Thomas Arifin, after the signing of cooperation with the ADB Bank Mandiri and Bank Artha Graha, the Hotel Dharmawangsa, Jakarta, Wednesday (25/11/2009).

Admitted that his side with a TFFP participants in this bank, Bank Mandiri will have easier access to boost trade finance credit lines. And to increase trade volume of Bank Mandiri and open new business opportunities, especially to countries which so far the volume of trade with Indonesia is still quite low.

According to data from the Ministry of Trade of Indonesia, until August 2009, Indonesia trade transactions to Asian countries dominate enough. Special to the Southeast Asia region, the total volume of exports and imports of Indonesia is USD24 billion, or 22 percent of the total value of trade in Indonesia, while other Asia-Pacific region of USD51 billion.

As of September 2009, according to SWIFT Watch, the number of transactions L / C exports and imports through Bank Mandiri is for a total of 20,300 transactions from 109 thousand transactions L / C nationally.

The simplest principle of stock investment would buy at the cheapest price and sell at the highest price. But in reality, few are able to execute.

Naturally, market trends always move in the direction diperngaruhi by many factors. Although the ends always shaped wave pattern, where there is always the highest point and there is the lowest point, but in reality difficult to determine where the wave amplitude limit.

Various methods of technical analysis, trying to make a statement to investors could recognize signals to sell or buy before the incident. Especially for the daily traders, the ability to read graphs meticulous technical methods and the ability to read trends of the bid and offer positions is a must.

But for investors who prefer fundamental analysis methods, certainly has a different perspective. For a fundamental investor, the daily movement of an investment is not a reference but rather the calculations regarding the physical aspects of the company’s performance in the long term.

In a column this portfolio, detikFinance trying to bring these tips to find stocks that are included in the category of cheap, especially in the banking sector, by using methods of fundamental analysis.

According to PT Optima Securities analyst Haryo Koconegoro, there are 6 methods that can be used to find out which bank stock is considered cheap, namely:

Price to book value (P / BV).
Price to earnings ratio (PER).
Price to Pre-provision profit (P / PPP).
Market cap to deposit.
Dividend yield compared with the risk free rate of return.
ROE compared to the cost of equity.

P / BV
According Haryo, this method is a tool commonly used valuation for bank stocks. P / BV is usually used to see the real value of a bank’s net assets alias net liabilities owned.

“Investors are usually willing to buy stocks with P / BV, ROE 2 times when at least by 15% or willing to buy the P / BV, ROE 3 times if at least 20%,” he said.

Based on research results Haryo, shares of PT Bank Central Asia Tbk (BBCA) and PT Bank Pan Indonesia Tbk (PNBN) quite expensive, while shares of PT Bank Negara Indonesia Tbk (BBNI) and PT Bank Bukopin Tbk (BBKP) into shares of the cheapest with this method .

PER (price of shares compared with net income)
This ratio is also frequently used by Haryo as P / BV. But the difference, PER is usually used to compare the stock with PER PER PER industry or market.

Haryo said the weakness of the PER calculation is easy distortion by revenues that are not related to operations such as foreign exchange earnings etc., that could affect net income position outside the operational performance.

“PER banking in 2010 reached 20 times, inline with the market PER in the range of 12.5 times,” he said.

With this method, the shares belonging to the most expensive is the BBCA and PT Bank Internasional Indonesia Tbk (BNII). Shares are classified as the least expensive is PT Bank Danamon Tbk (BDMN) and BBKP.

P / PPP
The ratio P / PPP is used to measure the operational performance of the company. Net income volatility caused by the imposition of provisional costs and tax costs can be avoided with this method is only focused on the company’s core business.

“However, there was criticism of this method, because the cost of provision should be also important to be taken into account to reflect the quality of bank management,” explained Haryo.

The lower the value of P / PPP a bank stock, then it is said the bank’s stock price is considered cheap. With this method, stock BNII BBCA and classified as the most expensive stock. BBNI BBKP shares into shares and cheapest.

Market Cap to Deposits (market capitalization compared with DPK)
This method is used to see how far the representation of the potential growth prospects of the bank. The logic used in the application of this ratio is deposits represent funds that can be used by the bank to be channeled into productive assets, particularly loans channeled into high yielding.

“The measurement of this ratio will only be valid if the conditions of both the banking sector and not in a financial crisis because it is assumed that there are deposits that the banks could largely be channeled as loans,” said Haryo.

With this method, shares classified BNII BDMN and most expensive bank stocks, while classified BBKP BBNI and least expensive.

Dividend Yield Compared with the Risk Free Rate Return
Compare the dividend yield (dividends divided Expectations current stock price) with the risk free rate (Government Bond Yield 10-year period = 9.5%) is the valuation method used to accommodate some who argue that buying a stock is only worth doing if the dividend yield can offer a yield above that offered by the risk free rate.

“The weakness of this method is not accounting for the possibility of price increases, especially for countries in category of emerging markets such as Indonesia, which has the capacity to provide the return on investment high enough just from the appreciation in price. Therefore, investors in Indonesia more tend to want to profit from price multiples, compared to the dividend income, “he explained.

With this method, shares classified BNII BBCA and most expensive stock, while shares BBNI and BBKP be the cheapest.

ROE Compared With Cost of Equity
Rationality that is used in applying this ratio is, if the ROE of the banks under her from COE (The number of return or minimum required return of investors to invest in a stock) then the better the investor funds were invested in other banks more profitable.

“Like the other ratios, this ratio also has the disadvantage of the risk premium and beta coefficients are used (For simplicity, we generalize this time risk premium = 5%, beta = 1, and the Risk Free rate = 9.5% for all banks). Meanwhile, the weakness of the ROE calculation is the difference of the quality of net income used to calculate the ROE and capital keoptimalan (Equity) bank owned (whether too little or too much) that can affect the level of ROE banks concerned, “said Haryo.

By using this method, stock PNBN BDMN and considered as the most expensive, while the shares of PT Bank National Pension Savings Tbk (BTPN) and PT Bank Rakyat Indonesia Tbk (BBRI) is the cheapest stock.

Well, for investors who want to invest in banking stocks may use research results in the consideration before making the investment measures

Soon we had entered the year 2010. Do you already have your financial plan in the year 2010? If not, maybe you should try to answer honestly the following questions are:

Do you monitor each month how much you spend?
Do you pay your credit card in full?
Did you already set aside some funds for retirement?

If you answered ‘No’ to question 3 above, it’s time you unpacked about personal finance and getting ready mengahadapi in 2010 with a new resolution.

Citi in Indonesia said that its financial tips, the first step to managing finances better is to evaluate your current financial position, namely the re-asset records (whatever you have) and how much debt you have. Good way to manage finances is used to create a budget where you can monitor the income and expenditure.

Based on the survey Financial Intelligence (Financial Quotient) from Citi Indonesia, only about 29% of people who follow a monthly budget that they create, while 82% had at this stage of trying to create and follow a budget.

For that, it’s time to tidy up your financial management and once you know the current financial position. You can make plans and financial objectives are SMART. Anything?

S (Specific): Set specific targets, do not just say: “Starting next year I will be more diligent saving.”

Determine how much savings you want, start when you save money and in how long you will get the desired value. Thus, you can also become more disciplined to set aside some funds to be saved per month.

M (Easily measured): Setting measurable objectives can help you monitor whether you are on track to achieve goals. If your goal is to raise funds for the down payment for a new house next year, then determine how much money from your income should be set aside per month. Each month you can measure had reached where your financial position.

A (Will be achieved): Make goals you can accomplish and think long term, but still find the small goals that can help you achieve greater results. Suppose you want to have a USD 15 million in a year, then the small goals you need to accomplish each month is to save a minimum Rp. 1,250,000 in the next 12 months.

R (Realistic): Creating financial goals must be realistic, because if not, you could face a very big failure. For example, you aspire to reach the target 60% rate of return on investment within a year.

T (Goal Real): real goal is the achievement of something that really exists, and can be measured. You will be motivated to set higher goals if you ever reach that goal ever before you decide.

Involve family members in setting financial goals, because they too will support the achievement of these goals. Write down these goals and review from time to time, this will be very helpful in achieving your financial goals.