John HoodTelekomunik Indonesia P.T.TLKBUYMar 20, 2014

Our PAST TOP PICK with TLK has triggered its stop at $19.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment gain of 14%.  

Our PAST TOP PICK with TLK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $17) to $19 at this time.  

Our PAST TOP PICK with TLK has achieved its target at $20.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $15) to $17.  

We again reiterate TLK, Indonesia's largest telecom with over 160 million customers, as a TOP PICK.  We like that cash reserves continue to grow as debt is retired and shares are bought back.  It trades at 12x earnings, 1.9x book and supports a ROE of 16%.  The robust dividend is backed by a manageable payout ratio of 2/3 of cash flow.  We recommend maintaining a stop at $15, looking to achieve $20 -- upside potential of 15%.  Yield 6.8%

We reiterate Indonesia's largest telecom with over 160 million customers as a TOP PICK.  Recently released earnings showed a 10% growth in personal account revenues along with a 14% increase in data consumption.  This allowed cash reserves to continue to grow, despite aggressively retiring debt and buying back shares.  It trades at 12x earnings, 2x book and supports a ROE of 16%.  We recommend trailing up the stop (from $12.00) to $15.00, looking to achieve $20.50 -- upside potential of 17%.  Yield 6.5%

TLK is the top provider of telecommunication services in Indonesia with almost 160 million mobile users.  Recently reported revenues were up 29% on the year, while the company is rolling out 4G and 5G infrastructure.  The robust dividend is backed by a payout ratio under 80% of cash flow.  We recommend setting a stop-loss at $12, looking to achieve $22 -- upside potential of 33%.  Yield 6.9%