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An open joint stock company, which offers telecommunications services.
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livoniarules (< 20) Submitted: 4/08/08 9:20 PM : Start Price: $31.92 VIP Score: -19.58
Industry - telecom cellular.... this is my second foreign telecom cellular pick using the new Gardner Brothers method of picking stocks regardless if the market is up or down... over time I think this is a winning strategy vs market timing... plus it cuts down on trading expenses...Sales Growth Rate is 47% which is consistent with its growth rate going back to May 2005Earnings Growth Rate is 31% which has risen from its 20% growth rate in Sept 2006There are about 120 stocks in the telecom cellular space and right now VIP from a technical basis has performed somewhere in the middle... this can be attributed to its earnings miss for the quarter ending 12/07.... Lets see VIP gets a black eye for a 3 cent miss and the financials are writing off tens of billions of dollars and injecting dilutive equity and they are getting rewarded? hmmmmmVIP has gross margins of 81.7%.... that is unheard of in almost any industry... subscriber market share has increased in 4 of the markets (countries) in which it sells its services.in the year ending 2006 and 2007 it delivered 5 billion in operating cashflow off of 12 billion in revenues..... the balance sheet is also very strongI believe the emerging markets with a vast amount of raw materials like Russia are going to eat the lunch of the developed nations of our planet... So if you are looking for a foreign play away from the contaminated US market, Russia is a good location... Does Russia have political instability? No, they will just lock you up or have the mob kill you... I like that, it is far better than letting the Democrats in office like we do in the US...I also believe that with this type of cash flow, VIP will be able to take advantage of other opportunities around the globe from an acquisition standpoint if it chose to.... Finally, I'm sure VIP hasn't even reached its potential of screwing over subscribers with a never ending parade of features that are as addictive as listening to a classic rock album on your turn table backwards.... while drunk
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GS751 (96.68) Submitted: 4/08/08 11:08 PM
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I like your analysis VIP has been on my watch list for awhile and I am have a synthetic long position using options.
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livoniarules (< 20) Submitted: 4/09/08 9:36 AM
I just bought some this morning and some TRA (chemical fertilizer).... going forward I am going to take smaller positions in a number of industries and have my ultrashorts as a hedge.... although i think the economy is going in the tank there are a number of industries that should still at least break even or go up.... not a lot of industries, but foreign emerging markets and agriculture are two
dexion10 (96.46) Submitted: 6/09/08 10:45 PM
Recs: 2 | Rec This
VIP is a one of the best telecom plays in the world. I prefer a different russian telecom called Mobile Telesys (MBT). MBT is bigger than VIP and trading at a lower forward multiple despite 36% yoy growth last quarter and has an 11x forward PE.Best of all MBT is being discounted because it doesn't have the business broadband plays like VIP got via acquisition. MBT has the financial strength to do that down the road - so I view it as a potential catalyst.MOST IMPORTANTLY: I believe a major reason to own a russian stock is to get exposure to the Russian Ruble without the carrying costs of trading the currency directly. The ruble is a "petro dollar" and so in the new high-priced energy world the ruble is poised to strengthen vs. the dollar and the euro regardless of euro / US central bank moves... so in that respect Russia is one of the best bets in the world from a currency standpoint next to Brazil... however Russia is much much cheaper than Brazil right now.
livoniarules (< 20) Submitted: 6/11/08 9:19 AM
great points, unfortunately I already bought VIP as one of my holdings and have decided to play the market with a longer term view and only trading a small portion of my portfolio... but for caps i need to green thumb after a review
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