Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Russia/Templeton Russia Fund (TRF) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (59)	3/1/1998 6:57:00 PM
From: Real Man	Read Replies (1) \| Respond to 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