How much does currency impact this qtr. Starting to see it come up on the multi-nationals. What is the exposure here. Gut seems to tell me there is a moderate risk here given the price action lately. I know some of you have a much better idea than my gut, so just putting it out here on the board.
American International Group Inc. on Wednesday said it agreed to acquire Laya Healthcare, Ireland’s second-largest health-insurance provider, as the insurance conglomerate looks to grow its health offerings overseas. Read More: PennystockwinnnersDOTcom
[remove DOT and use . for link] or Google them.
Good stuff. Thanks to all. I tell myself I only invest in things I understand. That's less true than I like to believe. Still, I'm not used to evaluating a whole country, much less two continents in geopolitical turmoil. I might take a small stake in a fund, as you suggest though. The 2% for expenses I'm guessing they charge is a minor consideration given these crazy valuations. A dollar is still a dollar, but making one comes with less "swag" when you know you gained it by sheer luck.
One more on this and then I'll shut up. I made an incomplete point and need to clarify: I wouldn't buy stock in an individual Russian company in this environment... the political unknowns here are huge. The move here IMO would be to buy a fund although personally I have not, and I'm not sure of the % allocation.
j0n - That's why I would probably do this through a fund and spread the money around. The political risk here is huge and obviously would not be worth having a portfolio of 100% in Eastern Europe JMHO. And this plus 5 bucks will get you a cup of coffee at Starbucks.
I get the idea of political risk, and appreciate your feedback and the replies below. But there's added risk for yndx. The Yahoo stats don't indicate a forward PE of .34- not by any stretch. That's even assuming the numbers are real. I've had bad experiences with inferior accounting standards for foreign stocks. You have to discount those numbers even if they are accurate. Might make sense for a small stake though, God knows my GNW turned out to be just as risky.
I don't want to run this place over with Russia talk but yeah, TRF is just a Templeton closed-end fund. Slightly higher Russia exposure in TRF, but T Rowe Price fund is 27% Turkey. TRF is only 2% Turkey. Just FWIW... It's an intriguing idea because the last seller is gone. Yes, there is political risk, but from an investor psychology standpoint, the last seller said "Get me out here" months ago.
Exactly 2 years ago when AIG stock was at $35 I told my KNOW IT ALL husband we should put $13,000 into this company.
His exact words to me (still have the email) "I'll handle the money babe ther on life support don't worry about the cash and make sure we have pork chops xoxo luv u my pretty lady"
Instead of listening to me he put that same money into GOLD (??!! oh isn't he original and clever) and lost $$.
I want to show him a fake trading invoice and pretend I actually bought it back then, and rub his nose in it. So if anyone is willing to share whatever you call the paper that would show what stocks you purchased, you can erase your name and account numbers and anything else that might identify you, email it to me, and I'll send you an Amazon gift card for $25 for helping with my masterful plan to make him feel like the mysogynist idiot he really is!
Thanks in advance.
It's an intriguing idea and totally agree on the sentiment... easy to be negative which is why it's probably an opportunity. What % are you in Russian stocks and would you or have you considered something like TRF to spread it around a little bit?
thanks for the reply
Russian stocks are despised the world over. The negative sentiment is unprecedented. The pe of ogzpy ,one of the largest most profitable companies on earth ,is 1.5, lukoy is 5, sbrcy is 2 etc. So yndx is not outside the realm of those extreme valuations. The only question is will Russia nationalize these companies. If the answer is no then this to me is one of the great opportunities. Not unlike aig at a certain period in time. As for eyes on the ground I have these through tremx in a 457 tax deferred account.
Russian stocks make aig look like a biotech
I'm not a tech guy, but I checked it out in deference to you. That .34 (now) makes little sense. The company would have to earn $51/shr next year to pull that off- unless they are selling off a business. The stock is at $17, book value $5. Making $51 seems like a stretch. Debt/equity ratios make no sense either. My guess is that some of the numbers yahoo used are in rubles. Russia is worse than small company oil. Unless you have a pair of eyes in the game, you're better off not playing. I'd welcome your analysis on this platypus. if you did any.