Russia/Templeton Russia Fund (TRF) Message Board

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Strategies & Market Trends : Russia/Templeton Russia Fund (TRF)

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To: Thomas Haegin who wrote (59)	3/1/1998 6:57:00 PM
From: Real Man	Read Replies (1) of 94

I guess it's true. But how much foreign money is there in that system? I heard 9 billion; Russia's market cap is 40 billion? I absolutely agree that Russia will tank should a meltdown happen. But 40 bln seems a very low price for a country of 150 mln with vast natural resources. Microsoft's 20000 or so employees are valued at 200 bln. nowadays. Investors are more willing to buy Microsoft's employee for 10 mln than a Russian employee for $800, coming in package with resources. Due to enormous political risk, at first there were no bidders on the privatized state property. The value of that property is much higher than what it was sold for; this coincided with stabilization of the ruble, and rapidly falling interest rates. So Russia had a huge bull market. I think, in case Russia chooses normal capitalistic way to restructure its economics, the potential of the stocks will be huge I'm looking at 20-bagger on the 10-20 year horizon. This would mean the Russian market would be valued at 50% of it's GDP, which at least would be equal to that in 1985. So I believe there is a huge long-term opportunity in Russia -Vi

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