Posted by asean_investor > 2013-09-18 18:21 | Report Abuse

Garuda Indonesia (GIAA:IJ; PSEOY:OTC US; YGD:GR) is the national flag carrier of Indonesia, with the largest seat capacity among Indonesia’s premium carriers. GIAAis the only listed play in Indonesia’s air travel market. After being state-owned for more than half a century, Garuda recently made attempts to modernise and move into the ranks of world-class airlines. The company was listed on the Indonesia stock exchange in February 2011 with 28 percent of its shares sold to the public at 750Rp per share. Indonesia’s air travel market is relatively immature and is experiencing one of the highest growth rates in the world. Two carriers dominate the domestic market:Garuda offering full service and Lion Group targeting budget passengers. WHEN TO BUY AND SELL • GIAA has historically tended to tradesomewhere in the range of ~1.5x -2.6x book value since listing in early 2011. GIAA’s listed emerging market peers have broadly traded in a similar range. • The stock is trading at the lowest level in its listed history, at a little over 1.2x BV. The metrics on which the stock is currently trading are likely to put of a floor under the share price. • An improvement in broader market sentiment could movethe stock to return to the lower end of its typical valuation range i.e. to around the Rp600 level. Beyond that, it is reasonable to suggest that GIAA could trend back up towards its listing price of Rp750 or even higher on a 12-month horizon, an upside of around 53% compared to its current levels. See more: http://www.asean-investor.com/indonesia-travel-taking-off-it-is-open-skies-for-garuda-indonesia-pseoyotc-us/