PT Telekomunikasi Indonesia (ADR) (TLK)

exchange rates and inflation supporting emerging markets

tlk, paying a dividend, just to borrow money for much needed infastructure. Indications are they only hope for five to ten percent growth in 09 and wishing for ten to fifteens percent next year. Does that sound like a cash generating cow?

Track Jim Jubak

PROs: Nice PEG of 1.5; Forward/Trailing P/E ratios of 14.4 & 16, respectively; profit/operating margins of 16.6% & 31.4%, resp.; 11.7% quarterly revenue growth (YoY); EV/EBITDA ratio well under 10 (at 5.1); good returns on Assets/Equity at 16.4% & 31.4% resp.; and good operating cash flow ($2.95B).
CONs: Big debt ($2.4B); low Assets/Liability Ratio (0.6); a bit volatile (somewhat thinly traded); has been having a good run & could fall in the short term.
Overall, though, I think this will be a winner in the 1-3 year time frame. For now, I'm placing a 3-month watch on it to track it a little more closely.

MDP Recent pic, nice dividend in a major emerging market. Fundamentals are OK. If Cramer's "Cellular Tsunami" actually materializes this company could see some major growth.

Time to add some exposure to another part of the world. Lots of room for growth and a track record growth, I think that is a good combo. Debt is a little high

emerging market, company major player in telecommunications

.6

- 4.4% dividend on 250m Indonesian population

Telecom in one of the most populated places in the world. Should be easy to be the S&P long term.

Company is well positioned to take advantage of the 4th largest population in the world.

Dominant telecom provider in Indonesia with fat dividend yield.

Huge market, very established. Plenty of room left to grow, recession resistant, overlooked by many investors.

the biggest subscribers share in cellular, fixed cable phone or even cdma - fixed wireless.
the biggest deviden payout ratio for goverment and it's shareholders too.
entering business ip tv and trying to build the largest internet backbone for indonesia.

the weakness part is the price war is reducing the quality signal in cellular, and reducing profit margin, and makes customer is easily moving betwen many operators in indonesia.
also being number one, sometimes makes TELKOM INDONESIA becomes arrogant in some aspects such as pricing, terms for customers, & hard to complain.

hope telkom even as the largest improve it's quality service & humble & easy to adapt the customer's need & complain.

the effort from telkom should be encouraged to the maximum limit. Telkom Indonesia is to make Indonesia country PROUD!

The size of the population alone, plus the assesability of its product, will generate tremendous, although , cautious grtowth, in the market.

Although I wouldn't call government ownership a plus all the time, I think it will help their regulatory environment. Also, their may be pressure to maintain the dividend to help out the government finances (though I don't see it really in danger) Huge increase in subscriber growth, with lots of room to grow with limited penetration in the market still.

Comment 2/28/09

I have to admit that I don't know much about this one, but the balance sheet looks solid and the dividend is nothing to sneeze at.

A safe, growing emerging market utility with a significant dividend at a cheap price is a great investment in these rocky times.

Underdeveloped sector. High growth potential with a solid company financially.