I was recently asked about a potential value opportunity in a certain Russian stock and thought I would share my current view. I am not ready to invest in Russian stocks. I do not trust the current government to protect investors. I do not expect the court system to play fair. I do not expect the rules, be they legal, banking, ethical, politcal or anything else to stay the same two days in a row. I have no confidence in Russia and everything I know about the subject leaves me with too many questions and not enough answers. The government of Vladimir Putin practices it's own ambiguous economic system.
From the International Herald Tribune: "President Vladimir Putin sought to reassure investors and foreign leaders that Russia remained committed to free trade and investment for businesses that work here, in spite of a chill in political relations with the West. But Putin said "Russia would integrate with the world economy on its own terms - and possibly not by embracing the current rules of the global economic order."
In China we aquired the stocks of four companies: Aluminum Corp of China ADS (NYSE: ACH), Huang Power International ADS (NYSE: HNP), PetroChina Co Ltd ADR (NYSE: PTR), and Shanda Interactive Entertainment (NASDAQ: SNDA). In India we own ICICI Bank (NYSE: IBN) and last week acquired Tata Motors (NYSE:TTM) We only buy stocks of companies listed on U.S Exchanges.
Everything is not perfect in China or India but they are working extremely hard to integrate into the global economy and earn respect from the international investment community.The same cannot be said for Russia. Therefore when it comes to Russian stocks "not yet" means Nyet!
Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.
Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.More coverage on Tata Motors and the Air Car from AutoblogGreen:
- February 8, 2007: India's Tata Motors, France's MDI announce agreement to bring Air Car to U.S.
- March 21, 2007: Agreement between MDI, Tata Motors brings Air Car closer to reality
- May 29, 2007: The Air Car: How compressed air propulsion works
- May 31, 2007: Video and information on Air Car's engine
- June 9, 2007: Interview with Miguel Celades, Sales Manager for MDI
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Reader Comments (Page 1 of 1)
6-19-2007 @ 1:27AM
Sam said...
What do you think about CHL ?
Totally dominates the market for the foreseeable
future.
6-22-2007 @ 10:12PM
Rlac said...
What do you think about SLT ?
6-26-2007 @ 2:16PM
Mike said...
Major problem with waiting to invest in Russia is that when it becomes time to buy the "big boys" (banks, mutual funds etc.) will have already bought in...and then they tell you it is okay to buy.
I bought Norilsk Nickel at 59.00 in 2003. It is now 218. I bought Gazprom at 14.75. It went to 104, split 5-2 and is now around 40. Bought Lukoil at 37. It split back in the high 80s back to the 40s and is now in the high 70s.
Happy I didn't wait...
6-26-2007 @ 2:19PM
Mike said...
Bought China Mobile at 24 and Aluminum Company of China at 23. China Mobile is over 50 and China Aluminum at 43.
7-09-2007 @ 9:35PM
Larry said...
Agree with the above comments. Lots of money has bvee made in U.S. on NYSE listed Chinese companies. I also wouldn't be afraid to buy Russia's biggest company, Gazprom.
7-16-2007 @ 7:00PM
Skon said...
I am live in Russia and I am Also afraid to take Gazprom. A have only 3 russian Gazprom stoks. Near $10-10.5 per stock i will take it maybe. The problem is not only in price.
I have Norilsk Nikel, NLMK, MAGNITOGORSK IRON&STEEL , Severstal, etc.
But I cann't take Methel, EVRAZ. I cann't take CHELYABINSK ZINC PLANT becouse they moved on LSE.