Vimpel-Communications JSC (ADR) (VIP)

LimoDriver1971 (83.62) Submitted: 7/23/08 10:55 AM : Start Price: $28.01 VIP Score: -14.43

I've chosen yet another CAPS pick for this reason:


VIP just purchased the rights to another huge market to expand into.


I use the word "rights" loosely. VIP just paid not just pennies on the dollar, but tenths of pennies on the dollar for a corporation that had limited ability of expansion or upgrades.


Their five year plan for Cambodia includes outfitting the country with telecommunication ability like they have never seen. From my limited research the Cambodian market has only about 10% coverage. Even if that can be doubled in 2-4 years that brings millions more up to the 21st century.


They expect to see $10 per month per user income, and with 2 million users - You do the math. They expect the upgrades and expansion to cost $200m. So that is a one year payoff (generally speaking). That is a two year payoff for the stock holders.


And note - none of this includes the massive amounts of Asian tentacles they are putting out.

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