CEDC (quote) distributes vodka and other spirits in Russia, Poland and other markets. The stock has been battered recently due to the summer heat wave (which favored beer makers) and rising agricultural input costs.
However, Synergy saw its own profits surge 56% in the first half of 2010. Considering that sales “only” jumped 14%, that represents a substantial improvement in efficiency as well as top-line demand for its product.
The better the Russian vodka market does, the better CEDC should perform.
Disclosure: No positions