BUMI trading frenzy

PT Bumi Resources (BUMI) Tbk dominated stock trading this morning with over 800 million shares exchanged hands in less than two hours of trading. The stock surged 13% to Rp2750 after yesterday's 10% gain.

Yesterday, 905 million shares exchanged hands with total trading value of Rp2.1 trillion where foreign investors were in net buy of over 200 million shares through UOB, UBS, JP Morgan, Credit Suisse, AmCapital, and Macquarie. Credit Suisse, agent for US$375 million convertible bond being issued by Enercoal---BUMI's subsidiary, was the biggest net buyer of 136 million shares.

On Wednesday, July 29, 648 million shares exchanged hands with total trading value of Rp1.45 trillion, where CLSA was the biggest net buyer of 125 million shares. In the previous trading day, CLSA also collected a net of 85 million shares.

At Rp2750, BUMI gained 547% from its bottom in January 15. THe stock is currently traded 67% below its peak of Rp8550 in June 2008. It is true that BUMI is lagging behind peers like Adaro (27% below last year's peak), Indika (34%), or Bukit Asam (19%) in the recovery. But with expected lower net profit this year (lower volume and prices) and bigger debts?

Coal	31-Jul-09	30-Dec-08	YTD (%)	Peak	From Peak (%)	Low	From Low (%)
Adaro Energy	1,270	520	144	1,730	-27	530	140
ATPK Resources	260	128	103	2,625	-90	110	136
Bumi Resources	2,750	910	202	8,450	-67	425	547
Bayan Resources	5,450	940	480	5,450	0	840	549
Indo Tambangraya	26,300	10,500	150	35,000	-25	5,950	342
Resource Alam	2,500	1,750	43	1,750	43	950	163
Perdana Karya	370	335	10	1,440	-74	210	76
Bukit Asam	13,350	6,900	93	16,500	-19	4,150	222
Petrosea	10,200	3,600	183	10,150	-4	3,350	204
Indika	2350	1090	116	3575	-34	920	155

BUMI had total liabilities of US$3.35 billion in March 31, 2009, surged 136% from March 2008 as the company raised more loans to finance acquisitions, including Herald Resources (ASX). 

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