Outlook For Czech Companies: A Bull and a Bear Case

I am bearish on the highest growing Czech blue chip in last 12 months (+70%), Central European Media (CETV). Its main money maker, TV Nova, is losing share in favor of TV Prima. Also, the price for advertising is dropping.

On the bullish side, I like Zentiva (ZTVAF.PK) which in recent week lost 16%, nullifying 12 months' performance. This was due to an announcement that they will not fulfill expected earnings results due to price regulation in the Czech Republic. Still, it is a great, expanding company doing acquisitions abroad. Profit share from activities abroad is increasing every quarter. I believed it will be going up with recovery in Turkey (last acquisition).

As a U.S. investor you can also participate with closed end funds CEE and RNE having some Czech holdings. Generally I think the CEE index will be outperforming the U.S. indices.