Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

ITMG: Double-Digit Dividend Yield in Indonesian Coal

BANPU: On Track to Become a Diversified Energy Player

ITMG: Indonesian Energy Plans to Fuel Mining Growth

Snippets#3: Thailand's New Debt Crisis? Hmm...Maybe Not

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Indo Tambangraya Megah / Equity Bottom-Up

<ul><li>Relatively strong analyst recommendation, slow asset growth, and cheap on a gross profit basis relative to its sector</li><li>ITMG should benefit from recent Chinese supply cut which should drive the global coal prices and increase the demand for Indonesian coal</li><li>Domestic demand should rise over the coming years as coal-fired plants are the main part of the Indonesian government’s 35GW program, which aims to build close to 300 new power plants</li><li>Trades at an attractive 17CE* 12.7% ROE/PB versus Asian Energy at 8.0% and ITMG is net cash</li><li>Risks: Coal price volatility and production sensitivity to heavy rainfall</li></ul><p><em>* Consensus Estimates</em></p>

Relatively strong analyst recommendation, slow asset growth, and cheap on a gross profit basis relative to its sectorITMG should benefit from recent Chinese supply cut which should drive the global coal prices and increase the demand for Indonesian coalDomestic demand should rise over the coming years as coal-fired plants are the main part of the Indonesian government’s 35GW program, which aims to build close to 300 new power plantsTrades at an attractive 17CE* 12.7% ROE/PB versus Asian Energy at 8.0% and ITMG is net cashRisks: Coal price volatility and production sensitivity to heavy rainfall* Consensus Estimates

Indo Tambangraya Megah

ITMG: Beneficiary of Chinese Supply Cut