There are many Russia stocks that are attractive right now because they appear to be cheaply priced. Russian companies look to be even more attractive because they are creating a closer relationship with China. They can mutually benefit from each other for various reasons.
One major reason China wants to create a closer relationship is because of Russia’s large supply of energy at a relatively cheap price. Gazprom (OGZPY), a very gas company in Russia, recently made a deal with China to supply them with natural gas. The deal is worth about $400 billion over the next ten years, which can be mutually beneficial for both countries. Obviously Gazprom (OGZPY) benefits because they acquired a large purchase from a large customer of natural gas (China).
Gazprom (OGZPY) has some litigation conflicts with European countries. Additionally, investors are unsure about other questionable practices with the company. That is why not many are rushing in to invest in the large oil and gas company. The large amount of speculation makes investors hesitant but it could have an enormous payoff. Gazprom (OGZPY) could very well prevail through all of its conflicts and dramatically increase in price. Despite all of the company’s conflicts, they are still making large deals to sell their natural gas to other countries. They are currently priced (May 16, 2016) at $6.17 per share. Despite all of the speculation about the company, it still appears to be undervalued.
A relatively new Russian company that appears to be undervalued is QIWI PLC (QIWI). They operate electronic online payments and sustain banking activity supporting processing of payments. QIWI’s (QIWI) network allows payment services through physical, online and mobile channels. In recent years, there have been dramatic increases in profit. Also, the company released its first quarter results recently and exceeded analysts’ expectations. QIWI’s (QIWI) recent quarterly performance in 2016 showed that earnings increased over 40% and revenue improved over 35%. Despite the countries macroeconomic slowdown, QIWI (QIWI) seems to be delivering strong results.
QIWI (QIWI) is steadily gaining market share, which makes it an attractive company to invest in. Even though they are a relatively new company, they appear to be undervalued and an attractive investment. They closed at a price of $34.66 per share on May 15, 2016.
These are just two Russian companies that appear to be undervalued. Mobile TeleSystems (MBT) is another Russian company that appears to be currently undervalued that was mentioned previously on this website. They are the largest mobile operator in Russia and also have been performing well despite the recent macroeconomic slowdown. On May 15, 2015, they closed at a price of $12.77 per share. The stock was mentioned on this site February 2, 2016 at a price of $8.34. Again, Mobile TeleSystems (MBT) still appears to be undervalued and has spectacular opportunity for growth.