Saturday, March 12, 2011

Top Stocks of Russia

Did you know that the Market Vectors Russia Exchange Traded Fund (RSX) has significantly outperformed the S&P 500 over the last two years. It has also outperformed over the last year, the last six months, and the last three months. Where has all this strength come from?

Russia has the world's largest reserves of mineral resources and energy resources. It also has the world's largest forest reserves. According to what the Russian government reports, the literacy rate is 99.4%. Of all the major economies, it has one of the lowest foreign debts. In addition, it has the fourth largest amount of farmland in the world, the world's largest natural gas reserves, the second largest coal reserves in the world, the the eighth largest oil reserves in the world, and is the fifth largest renewable energy producer in the world.

The following are some of the companies that are based in Russia that trade in the United States, that were turned up by

Mechel OAO (MTL) is a mining and steel production company. The stock has a price to earnings ratio of 16, a forward PE of 8, and a PEG of 1.32.

Mobile Telesystems OJSC (MBT) is a provider of cellular telecommunications services in Russia, Ukraine, Uzbekistan, and Turkmenistan. The stock has a PE of 17, a forward PE of 10, and a PEG of 0.90.

Vimpel-Communications (VIP) is a provider of wireless telecommunications services in Russia, Kazakhstan, Tajikistan, Ukraine, Uzbekistan, Georgia, and Armenia. The stock has a forward PE of 7, and a PEG of 0.31. It also pays a yield of 2%.

Wimm-Bill-Dann Foods OJSC (WBD) is a food, dairy, and beverage products company. The stock has a PE of 55, a forward PE of 28, and a PEG of 1.80. The stock pays a yield of 0.6%.

You can find a free list of more than ten Russian stocks that trade in the US at, which can be downloaded, sorted, and updated.

Dislcosure: Author did not own any of the above at the time the article was written.


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