Undervalued Russian Stocks Promise Either Windfall or Disaster to Bold Investors | News | The Moscow Times:
"Foreign participants of the St. Petersburg International Economic Forum should give the Russian stock market a closer look. According to analysts, Russian companies are now massively undervalued, presenting a huge opportunity to investors brave enough to grab it.
"Russian stocks are currently trading cheaper than half of their book net asset value, levels not seen even in troubled Egypt," said Martin Graham, chairman of London-based Oracle Capital Group and former head of the London Stock Exchange's AIM international market.
There seem to be more reasons than ever to avoid Russian stocks — Russia's confrontation with the West over Ukraine risks spilling over into damaging sector-wide economic sanctions; Russian growth has stalled to near zero; and the old bugbears of corruption, arbitrary courts and poor corporate governance have gone nowhere. But given the incredibly low price of Russian stocks, logic may in fact err on the side on investing.
Take state-controlled gas firm Gazprom, Russia's biggest company. Releasing its IFRS financial statements for 2013 last month, Gazprom said it had surpassed China's Petrochina and the U.S.' ExxonMobil and Apple to become the most profitable company in the world by EBITDA, earning a little over 2 trillion rubles ($58 billion) last year."
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