Vimpel-Communications JSC (ADR) (VIP)
An open joint stock company, which offers telecommunications services.
Recs
> Russian stocks went up too much, too fast
> High political risk in Russia
Recs
P/E is too high, too much debt, recent losses. I may lose my shirt on this pick, but I really can't see it outperforming in the short term.
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Look at the 6 month chart.
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caps worst 30days
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War! What is it good for? Absolutely nothing!
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I bought it...that is all.
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We're on the verge of an exodus of money from markets globally. This stock is up significantly over the past 12 months and it will suffer a big pullback as investors flee.
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Vimpel is owned by the Alpha Group in Russia. The Alpha Group is owned by billionare Mikhail Fridman.Fridman, 43, is a secretive Russian billionaire whois a key figure in Russia's dangerous policy of selling nuclear technology to the Islamic Republic of Iran. Simply Google his dealings.
The company has purported outstanding earnings and growth - yet instead of using that growth to fund future projects PVO(G) - they just borrowed 500 Million.
The lack of accounting standards and the general knowledge of "shady" dealings in Russia has me believing the run-up in this stock is not based on truth - but on lies. I see this stock losing 1/2 its value in the next two years.
Recs
and here comes the drop....
3G licence is up for grabs in Russia. Vimpelcom has tendered for it, but it doesn't look good. not winning this licence severely dampens the prospects for VIP in the near future.

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