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Templeton Russia and East Europ Message Board

  • fleetwood_89048 fleetwood_89048 May 26, 2009 1:45 PM Flag

    TRF Selling at 50% Premium Over NAV?

    That is very strange.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I also think it is strange. I feel good about the Russian Market and think the NAV of TRF's holdings will rise to the levels of TRF's current price sometime this year but I would have thought people would not have had to pay such a high premium to buy into the Russian market. There are alternatives.

      TRF is the best known Russian fund and supposedly has a the best record for stock picking in Russia but can anybody pick stocks well enough to justify such premiums?

      Is this retail investors pushing TRF up?

      • 2 Replies to nirrakar
      • "TRF is the best known Russian fund and supposedly has a the best record for stock picking in Russia but can anybody pick stocks well enough to justify such premiums?"

        No, nobody picks stocks well enough to justify such premiums.

        When TRF sells at such a high Premium it probably would be better to sell your TRF and buy RNE (or RSX) instead. RNE has had a 12% return over 10 Years (+210% return). TRF has had a 15% return over 10 Years (+304% return). But if you pay a 65% Premium for TRF then you are only going to get a +145% return. It just makes sense to sell it when it's at such a High Premium, pay the taxes, and to re-buy (if you really like it when there is either a very small Premium or even a Discount). And since TRF seems to pay quite a few large Short-Term and Long-Term Capital Gains, then the tax consequences don't even appear to be much of a big deal.

        In other words, you are better off buying RNE or RSX (or even CEE) then TRF at this time. Buy TRF when there is a small Premium or even a Discount.

      • Call Cramer. 1-800-743-CNBC
        I don't own TRF. I want to know if a 50% premium means oil is headed to $200. Why won't Cramer take a call?

 
TRF
13.15-0.06(-0.45%)Sep 19 4:02 PMEDT

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