Gazprom's gas prepayment demand risks end to stock rally, analyst says

Gazprom’s (OGZPY) 24% rally from this year’s low in March likely will end soon as the crisis in Ukraine threatens to disrupt the Russian gas producer’s exports, according to Sberbank Asset Management.

Gazprom’s demand that Ukraine pay up front for its natural gas or be cut off could backfire on the company, since shutting off the tap might disrupt deliveries to the rest of the region, says Sherbank's Anton Rakhmanov.

“The Russian market is driven by the Ukraine crisis, and until it’s resolved there can be absolutely no sustainable rally in Gazprom," the analyst says.

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Comments (5)
  • Pavlusha48
    , contributor
    Comments (71) | Send Message
    And why would I want to believe a Sberbank analyst?!
    14 May 2014, 12:02 PM Reply Like
  • Puma69
    , contributor
    Comments (160) | Send Message
    I was lucky to buy at the bottom, but only a small position. With the uncertainty there is a good chance for the price to go down a bit again. I hope so, then I will buy some more.
    14 May 2014, 12:22 PM Reply Like
  • pr_investor
    , contributor
    Comments (10) | Send Message
    Lukoil might be te better choice on the long haul. Yield rd. 5,5%
    14 May 2014, 01:35 PM Reply Like
  • heraklius
    , contributor
    Comments (108) | Send Message
    LOL is all I can say. I bought Gazprom in early April for $6.62 and it has had a great run. This anlayst must feel it's in for even bwetter days given he is trying to get people to sell. With this company's PE, PEG and yield, and the fact that it owns and produces a hard/tangible asset, it's a no-brainer to hold onto Gazprom. I just wish I had bought some other Russian stocks the day Obama said to sell Russia!
    14 May 2014, 01:57 PM Reply Like
  • Prezzo giusto
    , contributor
    Comments (1140) | Send Message
    It is probably much wiser to buy the stock of a company that hasn't made any profit the last couple of years, that has a load of debt, but has a nice story to tell.
    15 May 2014, 09:10 AM Reply Like
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