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Cimb Strategy Paper

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Strategy Explanation Paper
–Amazon Lily Team (Petra Christian University, Indonesia)
Investment Objective
Our investment objective is to seek an abnormal profit in 3 weeks trading period with minimal risk, to achieve Top 3 National position.
Investment Strategy
In order to achieve our investment objective, we created rule of thumb as follows:
• Abnormal profit
In order to gain an abnormal profit, we seek a stock with high volatility. Before the competition started, we did a lot of brainstorming, not just within us but within our university mates who also joined this competition. Through that, we learn stocks from various conglomerates group perform better and more volatile than others. We sort our list from Bhakti Group, Bakrie …show more content…

And we found 2 material news, 1 coming from Bhakti Group and 1 coming from Lippo Group. From Bhakti, we found that Bhakti would make IATA for its infrastructure holding (and we know infrastructure is a boom on Indonesia!). Unfortunately while we watch the running trade, we simply decide that the volume isn’t enough for us playing with 800 million (we need about 20000 lot while the bid offer just not more than 1000 lot for every price level) and historically it wouldn’t move above 80, so we decide not to take it (and this is a bad decision since we know suspect that the 1st rank take this IATA with its liquidity risk and unfavorable condition, unless they have some insider information about the future price!) Then, we went to Lippo Group and the news about some business divestment on MPPA and capital reduction. We analyze that this corporate action will lead a good profit for the parent, MLPL. So we decide to take position on MLPL at 20 Sept. (news released on 19 Sept after market close).
• Technical Analysis for Entry Picture 4 MLPL Chart on that day
Chart is really helpful for our decision to entry here. We wait the price to break fractal (the last high) at 154-155. We saw a good volume and price break at 2nd session of that day, we decide to take position 9400 lot at market price (155). The order is done on a good consolidation movement after price break. We sold it also at that day since:

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