10:11UTAir reports operating results for 6M 2008
The UTAir airline has reported its operating results for 1H 2008, which are indicative of the gradual slowdown in the company’s growth rates. In our view, a surge in jet fuel prices is one of the main factors behind the slowdown. We remain upbeat about the company’s strategy to develop its regional route network. However, complicated conditions in the industry will likely prevent the air carrier from generating cash flows for its shareholders in the near future, despite the operating results achieved. In our view, Russian airline shares, which have already noticeably cheapened, will remain under pressure from negative trends in the industry.
09:05Polymetal publishes weak financial performance in FY 2007
Although the Polymetal posted weak FY 2007 financials, the upbeat projections for its financial performance in FY 2007 could shore up its market value in fundamental terms. In 2007, the company incurred its main losses on future contracts for silver deliveries, which prevented the company from cashing in on favorable price trends on the market. 2008 promises to be a successful year for the company in light of price increases on precious metals, elimination of hedge buying, and production expansion.
09:04ESN-Russian Railways consortium acquires 32.2% in TGK-14
A consortium of Russian Railways and ESN has exceeded a 30% threshold in TGK-14 and has thus become liable to make a buyout offer to the genco’s minority holders at a price above the current market valuation.
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