Rostelecom, Gazprom news briefs
Date: 15 December 2009
Contributed by Finam
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By Finam
- The Rostelecom BoD has decided to delist ADRs for company shares from the NYSE, the company said in a statement on December 11. The motive behind the decision is that the listing has been incurring the operator a lot of expenses, both directly and in terms of administrative workload. In view of the delisting, the operator will stop disclosing its financials to the US regulator’s standards (20K, 6K and other forms). Rostelecom has voiced plans to ensure investors access to its ADRs on the over-the-counter market.
- It became known on December 11 that Gazprom is looking to boost dividend payments over the next three years. In 2010, the company intends to pay a dividend of RUB 1.86 per share. The dividend is to be raised to RUB 4.10 per share in 2011, and to RUB 4.72 in 2012. However, dividend growth is likely to stay within the limits of the company’s previous dividend policy and can only be driven by a rise in its non-consolidated RAS net income. Consolidation of Gazprom Neft on head company books should also contribute to this.
This year, Gazprom has paid out a mere RUB 0.36 per share in dividends, which corresponded to a 0.2% dividend yield on the dividend calculation date. We note that the company has noticeably deviated from its dividend policy during the crisis, mainly under pressure from the state. The targeted dividend payouts for the next three years imply an increase in the dividend yield on Gazprom shares to around 2%-3%, which is still a disagreeable level for investors who buy shares in the hope of a lucrative dividend yield.
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| Latest Stock Market Reports |
US stock market opening report (March 19, 2010, Friday)
European bourses opened in positive territory, led by financials as Lloyds said its trading has been strong in the first 10 weeks of 2010. However, equities came under pressure later in the session following concerns regarding Greece not being able to get financial aid from the EU. Also adding to volatility is the fact that it is quadruple witching day today. German 10-year government bund futures gained strength into the European open on the back of ongoing concern regarding failure of Greece to get aid from the EU that led to widening of Greek/German 10-year government bond yield spread.
World stock markets daily report (March 19, 2010)
The S&P 500 closed a smidgen lower Thursday on speculation the Federal Reserve will increase its discount rate which tempered the potential for gains spurred by further evidence that the economy is strengthening without stoking inflation. Bank of America and Schlumberger paced declines that sent financial and energy companies lower. In contrast Boeing, DuPont and 3M led gains that drove the Dow to an almost 18-month high after reports showed growth in Philadelphia manufacturing, a drop in jobless claims and no change in consumer prices. FedEx surged as its profit more than doubled and Nike rallied on higher-than-estimated earnings. So G5 near-zero rates continue to propel equity markets higher and help growth in the developing economies dramatically outstrip the G7. Meanwhile inflation is non-existent or at least very well behaved, so there is no pressure to tighten at the major central banks. With the unemployment rate at 9.7% my conviction is that the first Fed hike comes later rather than sooner.
Indian stock market daily closing report (March 19, 2010)
Market closed positive for fourth consecutive after a side way movement, There was huge buying seen in Telecom stocks like Bharati up by 3.65%, RCom up by 1.98% and Idea up by 2.08%. Market made an intraday High of 5270 and Low of 5237 and finally closed at 5263. The benchmark index Sensex closed at 17,519 up 59 points after making a high of 17,601 and low of 17,502. Among the broader indices - the BSE Midcap Index was up by 0.7% and Smallcap was up .37%. Today's market breadth was positive and Total Turnover was 93,932Cr which was . IT stocks were down today, TCS was down .82% , Financial Technologies was down .56%,Wipro was down .38% and Infosys Technologies was down by .35%.
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| Stocks Recommendations |
Godrej Properties IPO review and analysis by Angel Broking, 9 December 2009
Godrej Properties Limited (GPL) intends to develop its projects through joint development agreements with land owners. Under this asset-light model, GPL will enter into revenue, profit or area-sharing agreements with land owners, instead of an outright purchase of the land. This model avoids direct land dealings for GPL and the locking-up of extensive capital in land. Around 80% of GPL's existing land bank will be executed through joint developments with partners. The Godrej brand name has been associated with quality and strong corporate governance. Both of its existing listed entities, Godrej Consumer Products and Godrej Industries have given CAGR Returns of 48% and 77%, respectively, to investors since 2001. We believe that GPL could leverage its parentage brand (with respect to access to the land at Vikhroli and a strong customer preference towards it), assuring a timely delivery of execution. More than 50% of GPL's existing land bank is exposed towards township projects and in one location (Ahmedabad), which will be executed over the next ten years. Any delay in this execution or a fall in property prices in Ahmedabad will impact our NAV estimates, as 50% of our NAV is derived from this project.
JSW Energy Ltd IPO review and analysis by Nirmal Bang, 8 December 2009
JSW Energy Ltd. (JSWEL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has two thermal power projects under operation, with a combined installed capacity of 860 MW. JSWEL is a part of the JSW Group, a leading business group in India. JSW Group has a presence in high growth sector like Steel, Energy, Aluminium, Cement, Infrastructure and Logistics. Post IPO holding of Promoter and Promoter Group would be 78.12%
JSW Energy IPO review and analysis by Angel Broking, 7 December 2009
JSW Energy (JSWEL) currently has operational capacity of 995MW and is in the process of executing projects with capacity of 2,655MW. In addition, the company has 7,740MW power generation projects at an early stage of development. A major portion (2,145MW) of JSWEL’s upcoming capacities is expected to be operational by FY2011E thereby providing near-term visibility. Out of the plants under construction, the company expects to commission 570MW by end FY2010E, while another 1,575MW is expected to get operational in FY2011E. Thus, a robust portfolio and near-term Revenue visibility is a major positive for the company.
Surgutneftegas: Currency rates are putting away the dividends..., 26 November 2009
We have revised our model of Surgutneftegas. The reason for that was the output of the 3Q 2009 report, correction of our suppositions of the company’s future development, and also the postponing of the target time and evaluation one year forward. Particularly, in our model of Surgutneftegas we have corrected the former forecast of income for the current year towards reduction: on EBIT – by 2.2%, on the net profit – by 21.5%. Mainly that happened due to the corrections on the operating estimates, and also due to the continuing strengthening of Russian ruble, which, considering significant dollar liquidity of the company, turns into negative currency exchange. Due to the negative currency exchange precisely For the second quarter in a row Surgutneftegas shows low level of the net profit. The fourth quarter, as we see it, will not make an exception and we expect negative currency exchange similar to the ones in the third quarter.
Gazprom: Having passed the bottom, 23 November 2009
We have revised our estimation of Gazprom’s shares. The reason for up-dating the company’s model was the report by IAS for 1H 2009, the budget draft for the next year and corrections of WACC method calculation. The provided financial report of the gas monopoly totally brought no surprises. As it has been expected, the second quarter was worse than the first one and likely was the weakest within the whole year. In 1H 2009 the financial estimates were affected by the decline of the gas sale at all markets by 22.3% average, and by the reduction of the retail price of gas by 9.6% in the state of the far abroad and by 24% in Russia. As a result within the six months of the year 2009 sales slipped by 24.1 bn USD or by 32.8% and formed 49.285 bn USD, operating profit and EBITDA showed reduction by 56.7% and 52.6% respectively and formed 12.98 bn USD and 16.18 bn USD.
Cox and Kings IPO review, analysis and recommendation, 18 November 2009
Cox and Kings proposes to make its IPO in the price band of Rs316-330/share, at a face value of Rs10 each, and to issue 1.85cr shares, of which 30.5lakh shares are offered for sale by Lehman Brothers Opportunity, Deutsche Securities Mauritius and Merrill Lynch Capital Markets Espana. Therefore, the fresh issue by the company will be to the extent of 1.55cr shares. The company plans to use the proceeds for debt repayment (Rs129.6cr), acquisitions and other strategic initiatives (Rs150cr), investment in overseas subsidiaries (Rs62.5cr), and investment in corporate offices and upgrading its existing operations (Rs60cr).
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