An activist veteran investor foresees triple return in investing in ULTJ stock. He gave a short interview to Great Leap Indonesia (GLI) as to why and when ULTJ stock’s price is to triple. The investor helped foreign as well as local minority independent shareholders of AQUA block AQUA’s go private proposal in 2005 through a long fight, which was publicly followed by the media, via three-times shareholders’ meetings. His activisms in Indonesia’s financial market can be viewed in GLI website, www.greatleap.id. Here’re the Q&As:
GLI: When do you think your bullish prediction of ULTJ will happen?
Investor: It’s just been starting now. Well, ULTJ starts climbing in the past two weeks, from IDR 14-1500 to IDR 1845 now. The indication is it is in its very early stage of a new bull run.
GLI: Isn’t that because the company scheduled a shareholders’ meeting (AGM, EGM) on June 19, 2023?
Investor: A trader is doing everything he can to anticipate or trade for short-time price ups and downs, the price may move down or up after AGM, I don’t really know. But a true investor is normally looking for a more long-term view and actions.
GLI: Why do you see bullish on ULTJ stock?
Investor: Both fundamental and technical appear to be matching, showing an indication that ULTJ price is entering a new bullish cycle similar to that of 2013 where share price quadrupled. But if I’m wrong, the price is not going to fall very much. It’s a stable growth consumer company, appears to be more like AQUA where a great deal of challenges I experienced almost 20 years ago. To me, short term, downside risk of ULTJ is minimal, but the upside potential is tremendous.
GLI: Could you elaborate a little more detail.
Investor: There are so many news and opinions uploaded in the market everyday that drives short-term fluctuations. A fundamental investor sees that corporate actions like AGM and recent earnings have nothing or little to do with long-term share price’s performances.
GLI: How high is it going to go, you mention it is to triple you may be kidding me?
Investor: It may be about to triple I don’t know for sure when or how fast, but probably… in the near future. Indonesia GDP and the company earnings steadily grow while the share price was almost flat, it fluctuated, moved gradually up only 50-60% in the past ten years. As [if you were] true investors or even main owners of a company like ULTJ with stable growth and sound fundamental, are you going to accept that?
How high? You have seen it [the bullish pattern] that happened in 2013, to me it will probably be about to happen again.
I can’t tell you more detail than that, let market dynamism determines where the price is going to go. I was there ten years ago, and similar indications I find today.
Be aware there are so many different interests and interpretations that affect or swing ULTJ stock price in the market down the road.
I have some already in my basket, however, if it turns out to go down, or even go up after AGM & EGM, I may have to buy more.
Well, I may be wrong. Please do your own research and find alternative judgment.
The indication is so subtle. It’s little difficult to predict future direction of ULTJ stock’s price, especially if it is expected to triple in price. It’s not an easy task.