Lippo Mall Indonesian Trust – What really matters in a REIT

The more asset class your money is in… does it means its diversified??

26 properties (Sumatra & Java) | Founded in 2007 | Wale is at 3.383 (Not that long)

Comparison will not be done as I couldn’t find a Indonesian trust listed in SGX

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.838 (16.2% cheaper than fair value)
  • Price to earning ratio :  36.087 (Growing above industry standard – 20.971)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 55.308%
  • Growth Performance : -34.65%
  • Current Ratio : 1.135
  • Cash flow per share : 0.015 (Pay 0.37)
  • Slightly below average management ability (  Negative dividend growth  | Positive net income/gross profit margin | overall positive cash flow – Reduce in financing)screen-shot-2017-01-16-at-8-22-32-amscreen-shot-2017-01-16-at-8-22-28-am

3) TECHNICAL ANALYSIS

Screen Shot 2017-01-16 at 8.30.22 am.jpg

Weekly Chart

Price action has recently broke weekly structure of a bear (Down) trend [Sign of Reversal]. Market is currently at a key level of momentum (Consolidation), before moving to the intended direction. Additionally, market has a short-term up trend. If market breaks the purple area, market has a higher probability to trend bullish (Up) longer.

4) Would I be vested into it?

If I would, it would be due to stock’s price action (Key Level gives a good risk-reward ratio). All in all, I wouldn’t be that interested with its financial numbers as there are many similar companies with such numbers.

Article to read: (I found too little in english….sorry!)

 

“+1 knowledge point”

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