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27-07-2016, 03:34 PM
(27-07-2016, 12:45 PM)fundamentalman Wrote:(26-07-2016, 12:48 AM)stam Wrote: is country risk of this counter high?
political situation has stabilised in indonesia in the past few years. The riot in 1998 was pretty bad (lots of properties got burned by mobs). Chances of that happening again, I would say, is still quite high in the future, given the low income of its population. Hungry people are angry people.
Don't forget the currency risk too. Indonesia runs persistent current account deficit since 2012 due to commodity price crash. The currency depreciates vs strong currencies (e.g. sgd, usd, jpy, euro) in the long run.
Based on my several years investing in Indo market and hence research on the grounds (yeah i paid visit occasionally to malls when i visited Indo).
My assessment is that the risk is alot more on the integrity of the Management (not shareholders friendly) and not so much of the Country risk.
<small stake in Lippo's higher holding company - Lippo Insurance>
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
"The flowers that bloom in the spring, have nothing to do with the case".