Russian Stocks Are Trading Cheaper Than Half of Their Book Net Asset Value (MT)
Russian stocks are now massively undervalued and present a huge opportunity to investors who are brave enough to dive in as Martin Graham, chairman of London-based Oracle Capital Group and former head of the London Stock Exchange’s AIM international market, has told the Moscow Times that:
“Russian stocks are currently trading cheaper than half of their book net asset value, levels not seen even in troubled Egypt… In terms of earnings Russian stocks are traded up to four times cheaper than other emerging markets, while providing the shareholders with four percent dividend yield, among the highest globally… Russia was abnormally cheap even before the Ukrainian events, we see it as a sign of an oversold market. If Russian stocks’ discount to emerging market peers squeezes at least by half, this could lead to over 50 percent growth from current levels“
The Moscow Times also noted that according to IFRS financial statements for 2013, Gazprom OAO (OTCMKTS: OGZPY) said it had surpassed China’s PetroChina Company Limited (NYSE: PTR), Exxon Mobil Corporation (NYSE: XOM) and Apple Inc (NASDAQ: AAPL) to become the most profitable company in the world by EBITDA, earning a little over 2 trillion rubles ($58 billion) last year. However, Gazprom stock is trading at a price-earnings ratio of less than three.
To read the whole article, Undervalued Russian Stocks Promise Windfall (or Disaster) to Bold Investors, go to the website of the Moscow Times.
- What Russia Sanctions? Russia’s Rosneft and BP Sign Long-Term Oil Deal (MT)
- Russia’s Mechel to Dump US and Other Assets to Focus on Asia (MT)
- Russian Equities are at “Too Big a Discount” (CNBC)
- Who Are Russia’s Middle Class? Some Facts and Figures (MT)
- The Crimea: Already The Next Hot Real Estate Market? (MT)
- FATCA Fallout: Russia’s #2 Bank VTB to Stop Servicing Russia-Based US Clients (MT)
- Old Russia Hands’ Poll: Where Will Russia’s Economy Be in 5 Years? (MT)
- FPA Crescent (FPACX) Fund Makes Some Interesting Emerging Market Stock Bets (Kiplinger)
- Emerging Market CDS Volume Up 46% in 2014 (EMTA)
- Jupiter’s Croft: If History Repeats Itself, Russian Stocks Could Double (FE Trustnet)