Research reports
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Phoenix Capital endeavors to constantly improve the company’s research methodology while maintaining a profound understanding of the processes that shape the key industries of the Ukrainian economy – and how they correlate with global tendencies. This allows the company to develop successful strategies for each and every one of its clients. Every analyst in the Phoenix Capital Research Team is driven by long-term goals and takes pride in his or her professional reputation in order to provide investment recommendations that are objective and the result of only the most rigorous analysis possible. The opinions of Phoenix Capital research analysts and experts have gained them the trust of private and institutional investors in addition to national and international media. |
| March 09, 2010 | Fixed Income Weekly |  | Sector: Fixed Income Ukrainian Eurobond market remained strong last week. Political developments in country look clear and fast, adding positive to investors’ sentiment. We expect that new coalition will be created in Parliament (Rada) without much troubles, and new government will be appointed as soon as end March. Then 2010 budget should be passed, opening a road to renewal of IMF co-operation and unblocking funding from the EU, as well as creating a room for credit ratings upgrade. All of these expectations are to be realized till end spring, and look to be already priced in by Eurobond market participants. That’s why we currently recommend hold Ukrainian Eurobonds, and see restricted short-term upside potential in only a few issues. |
| March 05, 2010 | VAB posted the restructuring terms |  | Sector: Fixed Income VAB Bank has published restructuring terms for its $125 mln Eurobond, which are slightly better than we expected under the base case scenario. Our calculations of NPV shows the VAB Eurobond’s fair price is in the range of 84%-88% of par depending on the discount rate applied. |
| March 05, 2010 | Forum Bank: Time to Secure Profits |  | Sector: Banks Following a successful EGM and consolidation of an 89.3% controlling stake by Commerzbank, Forum Bank’s (FORM) stock appreciated and overshot, in our view. Although the bank will certainly benefit from the share capital increase in the long run, the bank’s prospects in the short term remain gloomy due to insufficient loan-loss provisions and poor operational efficiency. Therefore, we downgrade our recommendation for the stock and rate FORM a SELL, retaining our previous 12M target price of $0.98. |