Fit Investment Ideas

FONDUL PROPRIETATEA WELCOMES HIDROELECTRICA’S INSOVENCY EXIT  AND CALLS FOR ITS SWIFT IPO Bucharest, 21 June 2016 – Franklin Templeton Investment Management Limited United Kingdom Bucharest Branch, in its capacity as Investment Manager of Fondul Proprietatea SA (“the Fund”), welcomes the closure of the insolvency proceedings of Hidroelectrica following the syndic judge’s decision on 21 June.Continue reading “Catalyst for Fondul Proprietatea investors”

  Basic characteristics Dividend yield of 8% 2017 PE of 12.4 No debt, positive cash balance of 100 mln E ROE of 15% EV/EBITDA of 7 Not in the price: further significant potential from VLT – the investment was made, OPAP waiting for the licence. Plan B – OPAP already lunched BIT arbitration against Greece FromContinue reading “I am buying OPAP”

I am buying Unicredit. Below is an outline of Morgan Stanley report that nicely summarises the case. 1st Take: CEO Resigns   Unicredit’s CEO steps down after an extraordinary board meeting as “the conditions are now such that it is time for a change at the top of the group”. Mr Ghizzoni agreed to stayContinue reading “Buying Unicredit”

Excellent LEX article from FT. Simple common sence reasoning why to buy into Barclays restructuring. We are long Barclays.   April 27, 2016 12:55 pm Barclays: a life more ordinary It is plain to see why chief executive Jes Staley wants to turn Barclays into a transatlantic bank targeting the US and UK. Return onContinue reading “Barclays – why to buy”

Damadoran is the biggest guru in Corporate finance. Watch the video from about 14 minute. He talks on valuation, Tesla and Valeant. Well spent 8 miuntes. http://www.valuewalk.com/2016/04/aswath-damodaran-valeant-accounting-valuation/ Also recommended: http://aswathdamodaran.blogspot.cz/        

OMV Petrom is the largest stock in Fondul portfolio. Its underperformance is limiting Fondul Proprietatea growth. Interestingly, OMV Petrom is significantly underperforming its parent OMV AG.

IEA Sees Oil Oversupply Almost Gone in Second Half on Shale Drop By Grant Smith, Bloomberg Surplus to dwindle to 200,000 barrels a day from 1.5 million Iran’s return to global market impeded by financial obstacles (Bloomberg) — Global oil markets will “move close to balance” in the second half of the year as lowerContinue reading “Oil: Doha or no-Doha”

I am buying Valeant bonds for my portfolio.I selected 2023 as the re-rating potential is the highest. The 2023 bonds offer 9% yield. In current environment such yield is worth considering. Before you make the move, consider first reading this good common sence article from Seeking Alpha: http://seekingalpha.com/article/3959966-valeant-pharmaceuticals-sum-parts-analysis?ifp=0 Below I offer a summary of the researchContinue reading “Buy Valeant bonds”

Hidroelectrica: record profit last year, floatation in 2016 Hidroelectrica is the most profitable company in Romania The company plans flotation for second half of 2016 The Hidroelectrica energy company, has awarded the Deloitte consultancy company a EUR 382,000 contract for financial audit services spanning the 31 December 2015 – 31 December 2017 period, including services relatedContinue reading “Paul Singer´s Fondul Proprietatea will benefit from Hidroelectrica´s flotation”

Exerpt from Wood and Co research on Romania published 28/1/2016 We believe that the Fund should remain an attractive investment: Fondul Propreitatea trades at 36% discount to NAV, with the stock price having fallen over 13% in the past six months, due mostly to the prices of Petrom and Romgaz (together accounting for 38% ofContinue reading “Wood and Co update on Fondul”