Friday, March 07, 2014

Contrarian Play: Ukraine Stocks

With the "almost war" between Ukraine and Russia, investors are wondering if there may be an investment play around this. If you are a contrarian, you might want to take a closer look at Ukraine related stocks.

First, some information about Ukraine:

1. The Ukrainian stock market grew tenfold between 2000 and 2006
2. It is ranked 37th in GDP by purchasing power parity.
3. It has a low low Gini coefficient which means it has more equal income or wealth distribution than other countries.
4. It is ranked 52rd in the world for Nominal GDP.
5. It was the republic with the second largest economy when it was part of the Soviet Union.
6. Since 2000, the country had economic growth of 7% per year.
7. It is known for the production of all types of transportation vehicles including automobiles, trucks, buses, ships, airplanes, subway cars, rail cars, and spacecraft.

Here are some stocks of companies which operate in Ukraine:

Mobile TeleSystems (MBT) provides cellular telecommunications services in Russia, Ukraine, Uzbekistan, and Turkmenistan. 25% of net income came from the Ukraine. The stock has a P/E of 6.1 and a yield of 1.7%.

VimpelCom (VIP) is a wireless telecommunications services company that operates in Russia, Ukraine, Kazakhstan, Uzbekistan, and Tajikistan. The stock has a P/E of 7.4, a forward PE of 7.6, and a yield of 8.9%.

Central European Media Enterprises Ltd. (CETV) operates television stations in central Europe including Studio 1+1, KINO, and CITI in Ukraine. The company generated $691 million in sales.

For diversification, there is the Ukraine Opportunity Trust (UKRO.L), which trades in London.

For more information on other stocks around the world, go to

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


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