Six Ways to Invest in the Ukraine

Here is some interesting trivia about the Ukraine:

The Ukrainian stock market grew tenfold between 2000 and 2006.

It is ranked 28th in GDP by purchasing power parity.

It has a low low Gini coefficient which means it has more equal income or wealth distribution than other countries.

It is ranked 53rd in the world for Nominal GDP.

It was the republic with the second largest economy when it was part of the Soviet Union.

In 2006, they had economic growth greater than 5%.

The average annual growth of salaries has been 20% for the last five years.

It is known for the production of all types of transportation vehicles including automobiles, trucks, buses, ships, airplanes, subway cars, rail cars, and spacecraft.

Here are some stocks which operate in the Ukraine:

Mobile TeleSystems (MBT) provides cellular telecommunications services in Russia, Ukraine, Uzbekistan, and Turkmenistan. 25% of the company's net income came from the Ukraine. The stock has a P/E of 22.9, and a PEG of 1.9.

Vimpel Communications (VIP) is a wireless telecommunications services company that operates in Russia, Ukraine, Kazakhstan, Uzbekistan, and Tajikistan. The stock has a P/E of 27.6, a PEG of 0.96, and a yield of 0.9%.

Central European Media Enterprises Ltd. (CETV) operates television stations in central Europe including Studio 1+1, KINO, and CITI in the Ukraine. The stock has a P/E of 107.

Ukrnafta (UKRNY.PK) is involved in the exploration and production of oil, and gas. The 2006, the company's net profit margin was 28.79%, and its return on average equity was 32.85%.

Centrenergo (CTEUY.PK) is a wholesale electricity provider, with energy produced from geothermal wells.

Kontsern Stirol (SRLLY.PK) is a producer of ammonia, urea, liquid nitric fertilizers, and ammonium nitrate.

Ukraine Energy Acquisition [UEAC.PK] is in the water distribution, and water purification business in the Ukraine.

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

Comments

[ntsurikhin:]

Ukrainain market has taken an extreme blow during the fall of 2008-winter 2009 period. The fund market caved in on itself and decreased by 90%. In march, Ukr market bottomed out. Since April, the market has been expending and growing stronger (overal increase by 80%), with the banking sector growing by 220%, telecomunications by 100%, Oil & Gas by 80%, GenCo's by 50%, Metalurgy & Chemicals by 66% (UX - Ukrainian Exchange results at end of August 2009). The most liquid securities were the first to grow, and they are still the ones to be looked at as having the most potential as investors are still very cautious to enter into the tier 2 shares. However, most of the Ukrainian related DR's (UKRNY, CTEUY, SVX) are very illiquid having just a few trades per month. Thus, if any investor is interested in Ukrainian securities, he/she must look at the local shares, rather then the related DR's. One might also look at shares of Ukrainian companies listed in London (ex. Ferrexpo - FXPO)

Sep 02 06:22 AM