What are stocks?
Shares are proof of ownership by a natural person / legal entity in a public company whose shares are listed and traded on the stock exchange. If you buy/own shares in a company, you also own the company and are entitled to its wealth and income. Therefore, as the owner, you are entitled to attend the General Meeting of Shareholders (GMS) and have the right to vote to determine the company's policy and receive a share of the profit distributed to shareholders (dividends). Stock Classes By Market Capitalization:
1. Tier 1 Stocks (Blue Chip)
- Stocks with a larger market capitalization, more than Rp 10 trillion
- JCI and LQ45 drivers
- Good financial performance
- Prices tend to be very stable
2. Second Liner Stock (Mid Cap/Second Liner)
- Mid-cap shares, Rp 500 billion - Rp 10 trillion
- Some go to LQ45
- Fairly good financial performance
- Prices tend to fluctuate
- Various movements (berliquid and non-liquid)
3. Tier 3 Stocks (Small Cap/Third Tier)
- Stocks with a smaller market capitalization, less than IDR 500 billion
- Relatively small share price
- High price volatility and volatility
- Risk is often high
5 Best Long-Term Stock Options (2022)
Investing in stocks will give you the best returns in the long run. Based on JCI performance data in the last 20 years, the average stock price has increased by 14 times. Such a high rise is certainly very good for investors. However, the challenge for investors is finding profitable stocks in the long run. Here are some of the best long-term stock recommendations worth keeping:
1. BBCA (Bank BCA)
BBCA was the largest stock on the Indonesia Stock Exchange in 2019 by market capitalization. This means that it is the largest stock on the exchange. It is not for nothing that this is the largest stock by market capitalization.
This is how investors are rewarded for how well BCA shares are performing. BCA is currently the best bank in Indonesia and able to generate the best profits. BCA is not the largest bank in terms of assets, it is still held by Bank Mandiri, and the most profitable bank in Indonesia is not BCA, but is held by BRI. However, BCA is a bank that is able to provide the best benefits to shareholders, and BCA's asset-to-profit ratio is the best, which means that BCA is most effectively managed in terms of profitability and credit quality (low non-performing loans). There are several metrics that show BCA Bank outperforming other banks:
1. BCA's credit growth rate continues to be higher or at least on par with the banking industry, which is very important for banks because credit volume is the main engine of profitability. For a bank as large as Fengyuan Bank (with assets exceeding 100T+), it is not an easy task to obtain continuous loan growth.
2. The company's management is efficient and prudent, with the highest return on assets (ROA) in its class and the lowest non-performing loan (NPL), best in class. 3. The professional management behind Fengyuan's outstanding performance is not only reflected in financial indicators, but also reflected in the fact that most of Fengyuan's leadership comes from within, showing the strong and planned internal rise of Fengyuan Group.
2.UNVR (Unilever)
Unilever Indonesia is a well-known, largest and best consumer goods company in Indonesia. Unilever has several strong and well-known brands not only in Indonesia but also around the world, including: Rinso, Rexona, Royco and many more. With the large population growth in Indonesia, it is expected that there will be a demographic bonus in the next few years. The Indonesian market has great potential for consumer goods sold by UNVR. A powerful branded product can occupy a dominant position in the market and determine its price.
3. BBRI (Bank BRI)
Bank BRI is the most profitable bank in Indonesia. Bank BRI focuses on lending to micro, small and medium enterprises, which control most of Indonesia's lending market. The bank's history of more than 100 years gives companies a long experience and ability to manage MSME loans that are very qualified and difficult to compete.
4. TLKM (Telecommunications Indonesia)
TLKM is the stock symbol of PT Telekomunikasi Indonesia Tbk. TLKM is the largest telecommunications company in Indonesia and one of the largest SOEs known to the public through its telecommunications products. First of all, in terms of business, Telkom has good performance in long-distance networks and has the largest number of users that other telecommunications operators cannot match. In my opinion, one of the advantages of TLKM over other operators is because it is a state-owned enterprise with very strong investment support, which is an important condition for capital-intensive telecommunications competition. TLKM's offerings are the most complete: from Postpaid, Prepaid, Indihome, Internet and various other services, which allows the company to attract the largest telecommunications customers in Indonesia. Second, TLKM diligently distributes dividends to shareholders every year. In 2018, TLKM distributed dividends of Rp16.2 Tr or 90% of profit. Over the past 10 years, TLKM's dividend payment has increased from 40% of profit to 90%. I believe a company that pays dividends consistently is a good company. If the performance is poor, it is very likely that the company will not be aggressive in paying dividends. Of course, profits will be held without dividends to improve performance. Third, TLKM's profit margins are higher than competitors of other carriers, and have the highest average revenue per subscriber among other telecom operators.
5. ICBP (Indofood)
ICBP is Indonesia's most popular instant noodle maker, Indomie, which has been in business for 30 years and is part of Indonesia's leading conglomerate, the Salim Group. Why are ICBP stocks good? Indonesia's large population and upcoming demographic bonuses make the food market always full of prospects. After all, people have to eat. Indomie is one of the favorite foods of people from various walks of life. Therefore, the demand for instant noodles is expected to continue to increase. ICBP's financial indicators show the stable performance, growth and profitability of the company, namely:
First, revenue growth is followed by continuous profit growth year over year, in line with market growth.
Secondly, the paid-up capital of the company's shareholders has strong profitability, with ROE reaching 21% and ROA reaching 13.7%, which is much higher than the average level of the IDX food industry. Third, earnestly distribute dividends to shareholders The proportion of dividends in the 2018 financial year reached 34% of profits.