Thursday 17 April 2014

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 of Kernel 2013 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!


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