07/03/2009ECB keeps interest rate at 1%
The European Central Bank believes that keeping its benchmark interest rates unchanged at 1% could help it foster economic growth in the mid-term without the threat of rising inflation. We also note the ECB’s readiness to absorb excess liquidity as the economic climate improves, with the aim of lowering inflationary pressure in the future.
07/03/2009AvtoVAZ posts downbeat FY 2008 financials
The FY 2008 report from AvtoVAZ has turned out to be expectedly downbeat: steel prices soared in 1H 2008, while sales plunged in October-December. The car maker’s margins also fell due to a surge in administrative expenses. In our opinion, AvtoVAZ will close FY 2009 in the red, due to poor sales and high raw materials costs.
AvtoVAZ Common shares:
Price: $0,41 Preferred shares:
Price: $0,095
07/03/2009Pharmacy Chain 36.6 posts 1Q 2009 financials
The 1Q 2009 report from Pharmacy Chain 36.6 shows improvements in the company’s retail operations, which resulted in a reduced loss and a positive EBITDA at the end of the reporting period. We do not rule out some speculation-driven growth in demand for Pharmacy Chain 36.6 shares; however, in line with our estimates, the company’s stock is currently valued close to its fair value.
07/02/2009M Video posts strong FY 2008 financials
We are upbeat on the FY 2008 report from M Video: the company shows robust sales indicators, improved margins and an optimized debt load. We believe, however, that the company’s FY 2008 results have already been accounted for in its current stock valuations. M Video’s 1Q 2009 financial report should cause a more relevant market response.
07/02/2009GAZ Group to reschedule almost 100% of debts
News that almost all lending banks have agreed to restructure GAZ Group’s debts should help improve the car manufacturer’s credit standing. At the same time, Alfa Bank’s refusal to reschedule GAZ’s debt may exert a negative impact on the company. Given GAZ Group’s social significance, the company is unlikely to go bankrupt.
GAZ Common shares:
Price: $13,00 Preferred shares:
Price: $8,50
07/02/2009Kamaz posts negative FY 2008 IFRS results
The FY 2008 IFRS report from Kamaz has turned out to be expectedly weak, given the sharp downturn in sales in October-December and a substantial upturn in steel prices in 1H 2008. Growth in receivables caused a major increase in sales costs. In our opinion, due to the sharp drop in sales, the truck maker could close FY 2009 in the red.
44.8
1.09
