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 : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?

To: P.T.Burnem who wrote (588)	8/31/1998 8:59:00 PM
From: Rob Shilling	Read Replies (1) \| Respond to of 1301

So PT Burnem, did you buy VIP today ?? It was down 27%. Yes VIP is more western and traditional so it should be o.k. However, VIP's latest earnings report showed a year over year decline in earnings. I for one am realistic about how long it will take for Russia to become economically robust again. It could take quite some time, so since VIP is a cellular only company in Russia, it is not bullet proof. You can't have it both ways PT. If your general theme is "Russia is garbage", why would you think the population would be able to pay for cellular phone service in increasing numbers ??? Now, ROS and LUKOY are formed from the "old style" Russian companies, but they have the genesis of western style management. You get two things with these stocks. The first is potential for growth, the second is the potential for increased efficiency. It is like buying a turnaround and and growth stock at the same time. There is also a positive to owning "old style" Russian companies: They may get favoritism from the government. Witness Victor C.'s favoritism towards energy firms. Also, both ROS and LUKOY are in the RTS index. If Russia rebounds, so with the index and its components, independent of how their businesses are fairing. As for the difference between "investing" and "gambling", everybody has their own definition. If you were buying tech stocks earlier this year, you probably look like a "gambler" after today.