13 Ways to Invest in Turkey: The Fastest Growing Economy in the World

This is not a group of stocks that is a play on the upcoming Thanksgiving holiday, nor is this a group of bad stocks that use the word 'turkey' as a negative connotation. Instead, this is compilation of stocks of companies that are based in the country of Turkey. Most of them trade on the Pink Sheets, but a couple trade on the New York Stock Exchange.

Here is some interesting trivia about Turkey:

It is one of the fastest growing economies in the world.

It is ranked 16th of all countries in GDP purchasing power parity.

It is a founding member of the Organization for Economic Co-operation and Development.

Its GDP grew by 7.4% for 2005.

The service sector makes up 64.5% of GDP.

It received $18.2 billion in revenues from tourism in 2005.

It's inflation rate dropped to 8.2% in 2005.

It received $8.5 billion in foreign direct investment in 2005.

Its literacy rate is 95.3% for men and 79.6% for women.

Below are some Turkish stocks that trade in the United States:

TURKISH INVESTMENT FUND (TKF) is a closed-end fund that invests in Turkish companies. The latest reported earnings were down 62.9%, and the stock sells for 1.18 times net asset value.

AKBANK TURK ANO (AKBTY.PK) is a commercial bank based in Turkey that provides corporate, commercial, retail and private banking services. Its net profit margin is 36.28%, and the return on average equity is 16.79%.

ANADOLU EFES BIRACILIK VE MALT SANAYII AS (AEBZY.PK) is a beer and non-alcoholic beverage manufacturer, and bottler of beverages. Its net profit margin is 17.83%, and the return on average equity is 36.73%.

BIM BIRLESIK (BMBSY.PK) sells food and consumer goods through a chain of over 1500 discount stores. Its net profit margin is 3.76%, and the return on average equity is 79.18%.

DENIZBANK SA (DZBKY.PK) is a provider of retail banking, private banking, and business banking services. Its net profit margin is 37.21%, and the return on average equity is 23.62%.

FINANSBANK AS (FNKXF.PK) is a provider of retail banking, private banking, credit card, and small, medium, and large banking services. Its net profit margin is 34.63%, and the return on average equity is 25.63%.

HACI OMER SABANCI HLDG. (HOMJF.PK) is a conglomerate which owns businesses in the areas of banking, insurance, tires, automotive, retail, food, cement, chemicals, textiles and energy. Its profit margin is 19.13%, and its return on average equity is 22.42%.

TOFAS TURK OTOMOBIL FABRIK (TTOBF.PK) it is a manufacturer of passenger cars and light commercial vehicles, as well as enginesand auto parts. Its models include Palio, Albea, Marea and Doblo. Its profit margin is 4.80%, and the return on average equity is 16.82%.

TURK EKONOMI BANKASI (TEKBF.PK) is a provider of corporate, commercial, retail and private banking services. Its profit margin is 18.11%, and the return on average equity is 19.56%.

TURKCELL ILETISIM HIZMETLERI AS (TKC) provides wireless telephone services, sports and news entertainment, Internet services, and other telecommunications services. The stock has a P/E of 20, a PEG of 0.98, and a yield of 2%.

TURKIYE GARANTI BANK (TKGBF.PK) is a banking company with over 500 domestic branches. Its net profit margin is 60.66% ,and the return on average equity is 77.09%.

TURKIYE IS BANKASI (TYIBF.PK) is a provider of retail and commercial banking services. Its net profit margin is 21.59%, and the return on average equity is 16.8%.

YAPI VE KREDI BANKAS (YVKAF.PK) is a provider of bank and financial services. Its net profit margin is 24.47%, and the return on average equity is 25.68%.

Disclosure: The author does not own any of the above.

Comments

[Tom B:]

Are you not concerned about the increasing political instability in the country? They just elected an Islamic and border conflicts with the Kurds seem to be ramping up. The EU has nixed accepting them into that axis of stable powers.

2007 Nov 15 10:36 AM

[Eric Peterson:]

"TURKISH INVESTMENT FUND (TKF) ... sells for 1.18 times net asset value."

Huh? TKF has been selling at a DISCOUNT to NAV since August, and the past few weeks has been at a 10% to 14% discount. Can we believe the other numbers in your article?

2007 Nov 15 05:46 PM

[Eric Peterson:]

"TURKISH INVESTMENT FUND (TKF) ... sells for 1.18 times net asset value."

Huh? TKF has been selling at a DISCOUNT to NAV since August, and the past few weeks has been at a 10% to 14% discount. Can we believe the other numbers in your article?

2007 Nov 15 05:55 PM

[fxtrader07:]

always nice to read stories about investing opportunities and then the author doesn't own any of them.
compelling enough to write home about - too compelling to own?

2008 Feb 06 10:20 AM