Saturday 28 February 2015

Ignore sanctions, invest in these Russian stocks









Despite a weakened ruble, increasing inflation and fighting with Ukraine, one analyst is bullish on Russia—or at least a couple of the country's stocks.
"It's about finding the right stocks, and in Russia we are managing to find them," Conrad Saldanha of Neuberger Berman, told CNBC's "Power Lunch" on Friday.
The analyst noted: "We've got some good assets and high-quality businesses generating good cash flow. The risk with all of this is the ruble, which has been weak and lost almost 50 percent of its value over the last 12 months so."

Magnit


Russia's biggest food retailer, Magnit, is a top pick for Saldanha, because its business tends to generate a lot of cash.

"Inflation is good for food retail generally but not for
discretionary retailers. It's a great place to be in the Russian context," he said.

Yandex

Saldanha called Yandex "the Google of Russia." The internet company operates the largest search engine in the country and also develops internet-based products and services.
"Despite that the economy in Russia is going to shrink this year by five points, you should still see growth coming through from Yandex."

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