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For nearly twenty years, Doug Gerlach has taught individuals and investment clubs to make smarter decisions about investing in the stock market, through books, software tools, websites, and educational presentations across the U.S. Gerlach is the President of ICLUBcentral Inc., makers of... More
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  • Russia's Yandex (YNDX) Poised For Above-Average Long-term Returns 0 comments
    Dec 6, 2012 1:11 PM | about stocks: YNDX

    Yandex (YNDX), recommended in the September 2012 issue of the SmallCap Informer newsletter at $21.12, reported third-quarter results on October 30, 2012, with revenues of $235.2 million, up 33% compared with Q3 2011. EPS were up 26.4% to $0.22. The company explained that core contextual search business drove the strong top-line growth and maintained its 60+% market share of the Internet search business in Russia.

    YNDX also launched its own cloud-based browser, with support for automatic translations, security to block malicious websites, and user-selectable search engines. Third-party developers can also customize the browser for their particular needs.

    Since the earnings report was released, Yandex has released a search app for the iPad and rolled out a enhancements to its automobile classified ad service. The price has also fallen from a peak of $23.31 on October 31 to a recent price of $21.15. On the street, analysts are projecting 29% EPS growth over the next five years. Even if the company grows on average well below that rate and the P/E Ratio contracts accordingly, the stock is still poised to deliver above-average returns at its current valuation.

    We see Yandex as a buy up to $23.00.

    Disclosure: I am long YNDX.

    Stocks: YNDX
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