Money Oriented

Firm Value from 2004 – 2008 (Stock Closing Price)

Dec 31, 2004 = 48000
Dec 31, 2005 = 63000
Dec 31, 2006 = 110000
Dec 31, 2007 = 129500
Dec 31, 2008 = 127000

From December 2004 until December 2008 the graph the stock price increases from Rp 48.000/lot until Rp 127.000/lot. This shows that the company from year 2004 till 2008 the company needs less cash-in-flow from the investors (stock buyers) which means that the company having a good financial condition ( in term of profits earned by firm) from year to year.

And at 2009, the company finally choose to be a private company in where the company will be run by its private owners’ money not from the public money (stock buyers) which leads the stock price into its higher price level. When the price is high and it’s stagnant, people tend to don’t buy the stock. Because the risk of investment is low and the chance of getting profits is low too.