These are Stock Options at Low Prices But Predicted to Have Bright Prospects

Reporter: Kenia Intan | Editor: Adi Wikanto

KONTAN.CO.ID – JAKARTA. Check out the stock options at low prices but are predicted to have bright prospects in 2022. These low-cost stocks generally come from the second and third-tier stock groups.

The share price is relatively cheap because per share is under Rp. 1,000. This means that the stock price is cheaper than the retail price of cigarettes.

Second and third tier stocks tend to be sluggish since the beginning of the year. This is reflected in indices such as PEFINDO25 and IDX SMC Liquid which are moving sluggishly. In year to date (ytd), PEFINDO25 fell 0.31%, while IDX SMC Liquid slightly rose 0.33%.

Just so you know, PEFINDO25 is an index that measures the stock price performance of 25 small and medium listed companies that have good financial performance and high transaction liquidity. Meanwhile, the SMC Liquid index measures the price performance of stocks with high liquidity that have small and medium market capitalizations.

Certified Elliott Wave Analyst – Master PT Kanaka Hita Solvera Daniel Agustinus observes that small and medium-sized stocks have been sluggish since the beginning of the year due to rotation in the stock exchange. Currently, investors tend to buy stocks blue chip for his brilliant performance in 2021.

For example, blue chip stocks in the banking sector such as PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Central Asia Tbk (BBCA), PT Bank Negara Indonesia Tbk (BBNI). For second- and third-tier stocks, investors are seen waiting for the release of their annual financial reports.

“Until now, only about 27 issuers have issued annual financial reports and the majority are blue chip or big caps issuers,” Daniel explained to Kontan.co.id, Saturday (19/2).

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According to Daniel’s observation, historically the second and third tier stocks started to move or strengthen when stocks blue chip or large market cap (big cap) began to stagnate. In other words, that’s when there will be a rotation from blue chip stocks to second and third tier stocks.

Even though he hasn’t seen much attention at the moment, Daniel observes that there are several attractive second and third tier stocks, such as PT Multipolar Tbk (MLPL), PT Matahari Putra Prima Tbk (MPPA), and PT FKS Food Sejahtera Tbk (AISA).

MLPL shares are attractive as they are driven by action rights issue at a price of IDR 500 per share. As for the proceeds right issue of which Rp. 999.8 billion will be used for debt repayment and business development.

Meanwhile, for MPPA, its share price has corrected quite a bit after the Temasek Group sold its 69.8 million shares or 0.83% in MPPA. MPPA also plans to expand with additional outlets, such as HyFresh and several other supermarket outlets.

In addition, MPPA has collaborated with GoTo, Grab, Shopee, and e-commerce networks to help market their products online. It is hoped that with this offline-online business, MPPA will be able to record positive growth in 2022.

Then AISA shares, after restructuring its debt, AISA was able to book a satisfactory performance until the third quarter of 2021. AISA recorded a net profit of up to Rp 17.9 billion. Whereas previously, AISA suffered losses of up to Rp 59.5 billion. If this trend continues, AISA’s performance has the potential to make a comeback this year.

Against the three stocks above, Daniel recommends buy on weakness MLPL shares with a target price of Rp 320 per share. Meanwhile, the target prices for MPPA and AISA shares are Rp 440 per share and Rp 250 per share, respectively.