Analysis of Novatek

A Russian gas company

Company: Novatek

Business: A Russian gas company. They are active in four fields with their gas and liquid hydrocarbons and those are: Exploration & Production, Processing, Storage & Transport and finally Marketing.

Active: Yamal-Nenets Autonomous Region (all their exploration and gas fields are there) and Russia which they support with 16% of their entire gas demand. They are actively selling products to Europe (large contract with Germany), the US and China.

P/E: 9.4

Analysis of Aeroflot

A Russian air transportation company

Company: Aeroflot

Business: A Russian air transportation company. They performing all the classical tasks such as Transportation of Passenger and Cargo, but also Catering, Insurance, Cargo-Handling, fuelling Services and Duty-Free Retail.

Active: Main focus Russia but are flying to 52 countries world wide

P/E: 20.6 (however what makes it a bit more interesting the P/E3: 6.4)

Kernel operating report Q3 2014

Kernel, Operation, reeport, Q3, 2014, front page

It has indeed been a a difficult period for Kernel and the stock market has been hard on them due to the conflict with Russia. This caused the shares to drop far over 20% during the last quarter but besides from that how has the company actually been doing?

Happy Easter to all of you

happy easter, card, greeting, nephew

This year I even received an Easter card from my little nephew which I am very impressed over since he is only one year and eight months so his skills are spectacular! Now for Easter I will see him once again and this time maybe he will even be talking a little! This is indeed good news because that also means that one can start teaching him about frugal living and austerity.

As a responsible uncle I will do my very best to explain to him that he will not be allowed to buy a new car, that he will never be allowed to take any credit unless it is for buying an apartment or a house and when he studies he is not allowed to take the credit only the part that is given by the Swedish government and on the side he should flip burgers or something similar to make sure he can pay his bills.

Most of the things I want to teach him I probably have to wait with but maybe one can start with small steps of his and mine and that to get things he must do something in return... Most likely I will fail with this little project during the Easter especially since I only got one and a half day with him but I will try.

Looking back at my own life I have made many of the mistakes that I want to teach him and in a way I wonder... just like I want to teach my nephews and future kids about things I find important to live a good life I wonder what my own parents took with them and have tried to teach me and what about my siblings? What do they want to teach their own children?

And what do you want to teach yours?


Analysis of MegaFon

A Russian telecom company

Company: MegaFon

Business: A Russian telecom company. Besides from offering the classical things of voice, mobile, and fixed-line data transfer and roaming they are also active in offering mobile phones, laptops etc. with their own brand on the products.

Active: Main focus is Russia but they have also expanded into Tajikistan, Abkhazia and South Ossetia.

P/E: 10.4

Analysis of Gazprom

A Russian energy company

Company: Gazprom

Business: A Russian energy company that are sitting on 18 % of the worlds calculated gas reserves. They are active within several fields and to just mention a few: Geological Exploration, Gas Production, Gas Transportation, Storage of Gas, Processing & Sales of Gas as well as Marketing of of Heat and Electric Power.

Active: Main activity is Russia but they are a large exporter of gas via their 168.000 km gas pipelines and are therefore present in 30 countries. Is a major player in Europe since several countries buy the gas from Gazprom.

P/E: 2.6

How contrarian has Russia and Ukraine become?

Russias colours and country from wikimediaUkraine colours and country from wikimedia

source: Wikimedia

When the conflict between Ukraine and Russia started my company Kernel (analysis can be found here) directly dropped by several %-age and I decided to step in with more money to get more shares. Kernel is however registered in Poland but are active to 100% in Ukraine. The registration in Poland makes me a little bit more comfortable since it is within EU and to go further East has an increased level of risk to it but on the other hand if I am crazy enough to buy into a war then why should going further East stop me?

Since the start of all the troubles I have been interested in taking a closer look at Ukrainian as well as Russian companies. Until now I had not found a company screener that I was comfortable with but now I have (at least for Russia) and in the next couple of days / weeks I will try to take a look at companies in both these countries. Easter is however coming up and I will be travelling so we shall see how many articles I will manage to produce... maybe none... maybe one per day as I usually try to do it depends a little on my neighbour and that he sometimes graciously (but yet unknowingly, I am sure) leaves his internet open for the world to use.

If we only look at the stock markets then the drop has been in Russia over -20% and already from the start the companies were traded at low P/Es. In Ukraine if I got things correct the shares are even up by +35% this is very exciting! I guess it comes from that investors / institutions have done two things... punishing Russia and at the same time discovered that Ukraine existed and woops had a lot of cheap companies and I am very much looking forward to digging thru a few of their companies!


Analysis of Asseco Poland

A Polish information technology company

Company: Asseco Poland

Business: A Polish information technology company. They have two pillars that they stand on and one is the sale of software (platforms for internet based businesses) and services (knowledge management, risk management and workflows)

Active: Poland is their strongest market and from there they are moving out into the rest of Europe. They grow by acquisition of smaller companies using the Polish market and market position as a cash cow for doing so.

P/E: 9.5