Stock analysis: SMSM.JK poised to fly

PT Selamat Sempurna Tbk (stock code=SMSM.JK) is the flagship of the ADR Group (Automotive Division) and is currently one of the largest manufacturers of filters and radiators in the field. The company manufactures filters, radiators, oil coolers, condensers, brake pipes, fuel pipes, fuel tanks, exhaust systems, and the press. SMSM.JK has been registered since 1996, in the Indonesia Stock Exchange.

Fundamental analysis

SMSM.JK - PT Selamat Sempurna Tbk

	2011 Q3	2010 A	2009 A	2008 A	2007 A
1. Growth of EPS	+45%	+13%	+44%	+14%	+21%
2. Growth of income (sales)	+17%	+14%	+1%	+27%	+20%
3. Growth of operating income	+38%	+20%	n/a	n/a	n/a
4. Return On Equity (ROE)	22%	29%	27%	17%	17%
5. Dept to Equity Ration (DER)	0.65	1.06	0.80	0.70	0.65

PT Selamat Sempurna Tbk fundamentally shows a strong and stable performance. EPS is always up in 5 consecutive years in a row until the third quarter of 201. Revenue (sales) also increased each year. Operating income is high enough to show that profits are the result of its core business. Net income to capital in the last three years surpassed the figure of 20%. While the ratio of debt to capital (debt to equity ratio) is quite stable despite the above figure 0.50. Generally Good Excellent performance is quite convincing and robust, allowing companies to conduct business expansion.


Technical analysis

Technically, the chart pattern forming SMSM.JK is cup with handle. Consolidation in the cup formed the basis for over a year. The handle region is also experiencing consolidation for several weeks. Already there are signs of prices going through the resistance (resistant). But hampered by the general market situation experienced the shock of the crisis in Europe resulting SMSM.JK stock prices still have not managed menembuas prisoner. Observe the movement of stocks SMSM.JK, and when it is traded in the IDR 1410 reference price purchase (price resistance) and when the trade was crowded, do the purchase. You can sell part or in full if the price has moved up 20% of purchasing the reference price. SMSM.JK shares is one of CANSLIM 2011 stock.

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