BUMI resources (BUMI) or ADARO (ADRO) ?

Many people avoid in collecting BUMI stock lately since the management have made some bad decisions according to the market participants. As we all know, BUMI has acquired DEWA, Fajar Bumi Sakti and Pendopo Energi Batubara in last December with total transactions more than 6 trillion rupiah. I was also avoiding to collect BUMI but I changed my mind since I look at its performance last year compare to Adaro which has been one of my favorite stock. I will show it to you...

BUMI	2008	2007
Total Asset (Mio IDR)	63,838,904.27	33,832,800.00
Book Value (Mio IDR)	18,922,758.71	13,464,000.00
Net Cash Flow (Mio IDR)	2,063,367.36	1,724,346.32
CAPEX (Mio IDR)	-6,799,282.42	-3,495,600.00
Sales (Mio IDR)	40,540,717.26	27,186,000.00
Operating Income	13,292,584.70	4,514,400.00
Net Income	7,744,383.10	9,468,000.00
Dividend	968,006.53	1,964,400.00
Total Share	19,404.00	19,404.00
Profitability
ROE	40.93%	70.32%
ROA	12.13%	27.98%
Operating Profit Margin	32.79%	16.61%
Net Profit Margin	19.10%	34.83%
Financial Risk
Debt / Equity	2.37	1.51
Valuation
BV per share	975.20	693.88
EPS	399.11	487.94
Sales per share	2089.30	1401.05
Cash Flow per share	106.34	88.87
ADARO	2008	2007
Total Asset (Mio IDR)	33,720,170.00	14,688,700.00
Book Value (Mio IDR)	14,009,245.00	2,150,554.00
Net Cash Flow (Mio IDR)	1,380,292.00	44,784.00
CAPEX (Mio IDR)	-1,463,972.00	-650,770.00
Sales (Mio IDR)	18,092,502.00	11,592,640.00
Operating Income	4,211,858.00	2,252,519.00
Net Income	887,198.00	88,534.00
Dividend	0.00	0.00
Total Share	25,348.51	1,427.97
Profitability
ROE	6.33%	4.12%
ROA	2.63%	0.60%
Operating Profit Margin	23.28%	19.43%
Net Profit Margin	4.90%	0.76%
Financial Risk
Debt / Equity	1.41	5.83
Valuation
BV per share	552.67	1506.02
EPS	35.00	62.00
Sales per share	713.75	8118.27
Cash Flow per share	54.45	31.36

If you look at the BV per share, BUMI is worth for 975.20. Today BUMI closed at 900, so just based on BV BUMI is relatively attractive. You could also compare it with ADRO which has BV per share of 552.67, which today closed at 890. From this point of view, BUMI should be rewarded with higher market price.

If we look at the D/E ratio we should agree that there has been some weaker indicator in BUMI which has changed its D/E ratio to 2.37. But I think this value is comparable with its long term expansive plan.

If you compare the EPS, Sales per share or CF per share, you might also realize that obviously BUMI is more attractive than ADRO at this present time. Also you could check the profitability. As a company BUMI has given its shareholder significant ROE.

So I guess I would start to accumulate BUMI again this week..