versija spausdinimui
(0)
Key stocks for this week
Despite the turbulent times, especially in Estonia, it is not believed that the fall in the share prices will continue throughout the forthcoming week. The withdrawals have been exasperated by the herding behaviour of small investors and it is believed that companies, such as Baltika, which has strong fundamental growth expectations and is now cheaper than the comparable Apranga.
Also, in particular, it may be of benefit to purchase Olympic Entertainment Group, Estonia’s casino group, which has announced the receipt of a licence for Category B machines (limited prize slot machines). Until now, the Company has a Category A licence only for unlimited prize slot machines. With the Company already having 55% of the Lithuanian casino market and Lithuania contributing to 23% of the 2006 sales, this may be a useful horizontalexpansion for the Company.
Latvia’s pharmaceutical company, Olainfarm, may experience a rise in its share price during the forthcoming week. This follows the announcement that the Company has concluded a contract with an international partner to produce memantine, a neuroprotector, on which the Company has focused for several years. The product, through the partner, will be available to the world market.
It is also believed that the share price of Lithuania’s dairy company, Rokiskio Suris, may continue to increase this week based on its preliminary 2006 results that will be released on Monday. It We anticipate the announcement of a good result, especially after Vilkiskiu Pienine, another dairy company announced a strong set
of turnover results. The main concern, though, is that the expenses have risen, especially the expenses related to Russian exports.
Last week in Baltic stock markets
Telecom results in line with expectations
Eesti Telekom and TEO LT, Estonia and Lithuania’s respective telecom companies, announced their preliminary 2006 results last week. Both sets of results were within our expectations. Eesti Telekom announced that it earned revenue of EEK5,765mln—less than 0.5% more than expected—and a net profit of EEK1,326mln. The share price closed higher at EUR9.60 from EUR9.37, after touching EUR10.77.
TEO LT earned a preliminary revenue of LTL735mln—also less than 0.5% more than expected—and a net profit of LTL130.5mln—2.3%less than expected. It was also in line with general market expectations. The share price rose marginally from LTL3.00 to LTL3.01.
Grindeks rumours
After Latvia’s pharmaceutical company, Grindeks, announced its results, a rumour spread that the Company was considering issuing a new share issue. Although this has not been conclusively decided upon, the share price responded positively to the idea and increased from LVL8.40 to LVL9.04.
Herding behaviour signals share price crashes
The general Baltic market experienced a rapid decline that hinted of a crash during the second half of last week. Small investors, particularly in Estonia, followed their natural herding instinct when Olympic Entertainment Group began to fall. This led to sharp declines across the entire Baltic market, with the number of losers exceeding the number of winners. At points, double-digit losses were felt.
Stong results for Eesti Ehitus soften the blow
Eesti EhituEesti Ehitus, Estonia’s construction company, was one of the companies that experienced the full force of the market turbulence last week. After reaching EUR14.35 early during the week, the share price plummeted to EUR11.50. However, the share price showed a strong rebound of 6.3% back to EUR13.60 on Friday after the Company released its 2006 preliminary results. The Company experienced a year-on-year revenue growth of 49.5% and, more impressively, it increased its net profit margin from 5.6% in 2005 to 7.6% in 2006. This is despite operating in a sector with rising costs. The Company has also proposed paying a dividend of EEK3 per share.
Olynmpic Entertainment Group expands
Olympic Entertainment Group, Estonia’s casino group, opened a new slot machine casino with 67 machines in the Jarve shopping centre. The share price rose by EUR0.17 to EUR11.50 on the news, but, after a week of high volume turnover, closed lower at EUR11.13.
Despite the turbulent times, especially in Estonia, it is not believed that the fall in the share prices will continue throughout the forthcoming week. The withdrawals have been exasperated by the herding behaviour of small investors and it is believed that companies, such as Baltika, which has strong fundamental growth expectations and is now cheaper than the comparable Apranga.
Also, in particular, it may be of benefit to purchase Olympic Entertainment Group, Estonia’s casino group, which has announced the receipt of a licence for Category B machines (limited prize slot machines). Until now, the Company has a Category A licence only for unlimited prize slot machines. With the Company already having 55% of the Lithuanian casino market and Lithuania contributing to 23% of the 2006 sales, this may be a useful horizontalexpansion for the Company.
Latvia’s pharmaceutical company, Olainfarm, may experience a rise in its share price during the forthcoming week. This follows the announcement that the Company has concluded a contract with an international partner to produce memantine, a neuroprotector, on which the Company has focused for several years. The product, through the partner, will be available to the world market.
It is also believed that the share price of Lithuania’s dairy company, Rokiskio Suris, may continue to increase this week based on its preliminary 2006 results that will be released on Monday. It We anticipate the announcement of a good result, especially after Vilkiskiu Pienine, another dairy company announced a strong set
of turnover results. The main concern, though, is that the expenses have risen, especially the expenses related to Russian exports.
Last week in Baltic stock markets
Telecom results in line with expectations
Eesti Telekom and TEO LT, Estonia and Lithuania’s respective telecom companies, announced their preliminary 2006 results last week. Both sets of results were within our expectations. Eesti Telekom announced that it earned revenue of EEK5,765mln—less than 0.5% more than expected—and a net profit of EEK1,326mln. The share price closed higher at EUR9.60 from EUR9.37, after touching EUR10.77.
TEO LT earned a preliminary revenue of LTL735mln—also less than 0.5% more than expected—and a net profit of LTL130.5mln—2.3%less than expected. It was also in line with general market expectations. The share price rose marginally from LTL3.00 to LTL3.01.
Grindeks rumours
After Latvia’s pharmaceutical company, Grindeks, announced its results, a rumour spread that the Company was considering issuing a new share issue. Although this has not been conclusively decided upon, the share price responded positively to the idea and increased from LVL8.40 to LVL9.04.
Herding behaviour signals share price crashes
The general Baltic market experienced a rapid decline that hinted of a crash during the second half of last week. Small investors, particularly in Estonia, followed their natural herding instinct when Olympic Entertainment Group began to fall. This led to sharp declines across the entire Baltic market, with the number of losers exceeding the number of winners. At points, double-digit losses were felt.
Stong results for Eesti Ehitus soften the blow
Eesti EhituEesti Ehitus, Estonia’s construction company, was one of the companies that experienced the full force of the market turbulence last week. After reaching EUR14.35 early during the week, the share price plummeted to EUR11.50. However, the share price showed a strong rebound of 6.3% back to EUR13.60 on Friday after the Company released its 2006 preliminary results. The Company experienced a year-on-year revenue growth of 49.5% and, more impressively, it increased its net profit margin from 5.6% in 2005 to 7.6% in 2006. This is despite operating in a sector with rising costs. The Company has also proposed paying a dividend of EEK3 per share.
Olynmpic Entertainment Group expands
Olympic Entertainment Group, Estonia’s casino group, opened a new slot machine casino with 67 machines in the Jarve shopping centre. The share price rose by EUR0.17 to EUR11.50 on the news, but, after a week of high volume turnover, closed lower at EUR11.13.