Hunting for stocks that have the potential to become multibaggers, this is the analyst’s advice

Reporter: Ika Puspitasari | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. A number of shares give return which has been fantastic from the beginning of the year until now. For example, there are shares of PT Telefast Indonesia Tbk (TFAS) which have soared 2,844.44% ytd, followed by shares of PT Allo Bank Indonesia Tbk (BBHI) which soared by 1.692% ytd, and shares of PT Digital Mediatama Maxima Tbk (DMMX) which rose up to 1.048% ytd.

Often stocks with high gains to exceed 100% are referred to as stocks multibagger. Talking about stocks multibagger, what are the criteria for the stock?

Philip Securities analyst Michael Filbery explains, stocks multibagger are stocks that have strong fundamentals and growth factors. In addition, the price is lower than its fair value, and offers return which is many times over.

“This is different from fried stocks, which have a very high level of volatility but are not supported by good fundamental conditions, so of course they have a barrier very high risk,” said Michael, Monday (27/9).

Also Read: These issuers have high ROE, which ones are worth observing?

The same thing was also conveyed by Hendra Martono Liem, CEO and Founder ARA Hunter at the Indonesia Financial Expo & Forum 2021 (IFEF 2021). He explained that the stock multibagger at least give a profit of 10 times. Apart from the stock price, market participants must also look at the fundamentals.

Hendra added, stocks multibagger It has a lower valuation than similar industries.

Michael observed, there are a number of stocks that have the potential to become stocks multibagger. From the banking sector, he saw that there were shares of BBNI, BMRI, BNGA, and BDMN. Then from the oil and gas industry there are PGAS, ELSA, MEDC, AGII shares, from the coal mining sector there are PTBA, ADRO, ITMG, and from the technology sector there are BUKA shares.

According to him, these stocks have good performance historical which is quite positive and supported by broad growth potential. The condition of the Covid-19 pandemic made the movement of the Composite Stock Price Index (JCI) quite depressed, causing these stocks to be corrected. In fact, these shares are now below their fair value.

With a fairly cheap valuation, Michael sees, these stocks have the potential to provide return big enough in the future.

For investors looking for stocks multibagger, he suggests for buy and hold these shares are in line with the growth of the issuer’s performance. “This strategy is certainly different from the way you play on fried stocks, where the increase is sometimes drastic but does not reflect” value from the issuer,” he added.

Also Read: The shopping center is starting to get busy, this is the issuer who benefits the most from Mirae Asset’s version

As for stocks with price increases of up to thousands of percent, according to Michael, these stocks are not yet worthy of being labeled as stocks. multibagger because the average already has a much more expensive price than value-nya.

As for some stocks that experienced the highest increase to thousands of percent, such as TFAS, BBHI, DMMX, TECH, BABP, ABBA, PEGE, and MPPA.

“In my opinion, technology stocks are still less attractive. Because the average business does not have the support of a strong digital business ecosystem,” concluded Michael.