TGC-5 shares are included in B Quotation List on RTS
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According to the press service of TGC-5, on November 10, 2006, the company’s shares were included in the B Quotation List of non-commercial partnership Stock Exchange Russian Trading System (RTS). We believe that liquidity of the market for shares in territorial generation companies will improve, which in turn will heat interest in this segment on the part of various categories of portfolio investors.
According to the press service of TGC-5, on November 10, 2006, the company’s shares were included in B Quotation List of non-commercial partnership Stock Exchange Russian Trading System (RTS). In line with the utility’s plans, TGC-5 shares are to obtain a MICEX listing on November 22, at the latest. We believe TGC-6 could join TGC-5 in the near future and TGC-6 shares are to obtain listings on the Russian stock exchanges by year-end 2006.
It’s noteworthy that at present, TGC-5 is the first among newly established territorial generation companies to obtain an RTS listing. According to our estimates, listings of TGC shares will help attract new groups of portfolio investors with conservative strategies and priorities in their investment declarations include instruments represented in quotation lists.
We believe that liquidity of the market for shares in territorial generation companies will improve which, in turn, will raise interest in this segment on the part of various portfolio investors. We assign a Hold recommendation to TGC-5 with a fair price of $0.00079 per share. Among undervalued TGCs, we assign a Buy recommendation to TGC-6, 8 and 9 shares. We believe investor interest in the generation segment will remain in 2007 but shift from WGCs to TGCs and TGC shares will post stronger gains.
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