Conclusion

From all the analyses above, there are several conclusions about the financial conditions and stock prices that can be made.

According to our liquidity analysis, we concluded that PT. Mayora Indah, Tbk. Depended a lot on their short-term liabilities during 2007.  After 2007, the firm bounced back and its liquidity ratios increased meaning that the firm decreased their dependency on short-term liabilities. When we compared the liquidity ratios with other ratios during 2007, we realized that they have something in common. According to our efficiency analysis, the firm experienced a decrease in efficiency. From 2006 until 2007, the inventory turnover decreased from 6.34896 to 5.2046 and the days sales in inventory increased from 57.4897 days to 70.1307 days. According to this efficiency analysis, goods were spending more time in the inventory during 2007, and consequently increasing the costs of storing.

Our leverage and profitability analysis also showed supporting data for the year of 2007. The year of 2008 was a very similar year for the firm. Even though the liquidity ratios showed a small positive increase in value for 2008, every other ratio showed a negative progress during 2008, similar to the progress during 2007. A reason for this decrease in the firm’s economic performance is the global economics crisis that occurred during the same period. Our efficiency analysis for 2008 produced results similar to 2007. Inventory turnover continued to decrease from 5.2046 to 4.3115 and days sales in inventory continued to increase from 70.1307 days to 80.6582 days as well.

Stock prices during 2011 gradually increased. However, the firm’s stock prices didn’t insignificantly increase during the first quarter of 2011 mainly due to the high prices of raw materials and the decrease in net income. During the next second quarter, the firm’s stock prices began to increase because it was the period approaching lebaran. Before lebaran, consumer’s demands for the firm’s goods increased, and therefore the firm must increase their production. This period of time is viewed by stockholders as a positive economic period for the firm and encourages them to keep their share of the firm. After the firm’s stock price reached its peak, it cooled down and declined.

In understanding the behavior of stock, we chose dividends behavior of the company to be comprehended, especially about the cash dividends. We knew that there must be so lots of other factors that influence cash dividends distributed by the company. As conclusion of this subtitle, we can say that this company’s stock trend line grew positively. What about the investors’ behaviors we can conclude? Investors tended to be so active in trading the stock if: (1) The value of stock is not promising as what PT Mayora, Tbk. faced raw material costs huge increase in the first quarter and (2) company reaches higher value of stock, especially when their dividends are just pad by the company. Conversely, investors tended to keep their stocks when: (1) They are still so long from dividends payment while the value of stocks are still promising and (2) There is certain predicted events of holding stocks until generate dividends of capital gain (as many stockholders prefer to hold their stocks to wait Christmas and New Year day (even in extreme sense they just wanted to keep their stocks).