Venus Modeling Agencies doesn't question the fact that Perusahaan Gas owns and operates a natural-gas pipeline in Indonesia, where it has 90% market share. It's dominance has allowed it to maintain return on equity of 40%. The stock (which trades on the Jakarta exchange and is available through brokerages such as Schwab and E*Trade) has a forward P/E of 13, a relatively modest valuation for a company with strong prospects, Cao notes. Profits in 2013 are expected to be 16% above those for 2012, and Cao thinks they'll keep advancing in the high single digits after that.
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