How to invest money in Romania

Romania as a EU newcomers is a emerging country with high potential. Main index BET is composed mainly of financial and mining. it is around 60% of market cap. Traded blue chips are Petrom, BRD, Banca Transilvania, C.N.T.E.E. Transelectrica. As in other transition economies local romanian companies are targets for acquisitions. In bank's sector BRD acquired by Societe Generale, Banca Transilvania by austrian Erste Bank.
On AMEX you have only few ETF focused on central and eastern europe only with fraction of romanian shares. Better way is to use certifikates at Xetra Wien or Stuttgart. Main emitents are Raiffeisenbank, Erste bank.

Weekly outlook - week 18.

I closed long with MS and opened GOOG. On Tuesday there is DIVX earnings announcement.

EUR/USD and GDP drop

GDP unexpected growth sent USD to lowest level agaist EUR. I bought call warrant with 10times leverage and closed position before closing. My expectations are that USD will gain a little bit in following days. Friday's Unemployment rate could strengthen USD.

However, if unemployment rate will rise investors community will see as potential FED lowering interest rate. If labour market remains strong it is also quite positive for Friday's trading outlook.

DIVX lost 10% in last week

Shares drop around 10% in last week due to CFO transition and mainly because of insider (CEO & CFO) sell off. I am still positive and this period is good for open long before earnings announcement which takes place on 1st May.

Another offer for ABN

After Barclays, ABN Ambro received offer from financial group Royal Bank of Scotland Group Plc, Santander Central Hispano SA and Fortis. New offer is 70 mld. EUR, around 3 mld. more then from bank konsorcium. Due to these speculation ABN Ambro shares have gained 35% from the beginning of the March 2007.

Micron Technology to watchlist

Micron (MU) is in play. Intel co. , HP c. and other partners announced solid Q1 and positive guidance. In line with many technical indicators (bullish divergence, MACD, Stoch) signaling strong buy.
sentiment: strong buy

Elliott Wave for czech PX50

Don't miss Gold Fields

Gold Fields (GFI) increased its gold exposure during last year. On the other site there is downturn risk as inflation risks are gone.
Watch closely to trade technically with Slow Stochastic (14,3).
sentiment: buy

Orco Property Group to watchlist

Some notable charts (12M)

Zentiva (baazen)

Unipetrol (baaunipe)

Erste bank chart

At June 2006 upward support line starts. Technically, the grow will continue as bullish divergence at February 2007 plus triangle pattern last 3 months give us stong signals.

BMW grows in China

China sales 30% up. China revenue 20% up. First time revenue better than in Japan.

European banks conlsolidation

M&A apetit with ABN plus Societe Generale and Unicredit attracting money into. Potential target for acquisition could be Erste Bank (BAAERBAG) currently trade at CZK 1672 w/o significant trendline last 4 months underperforming czech PX50.
sentiment: hold

How to invest money in Czech Republic

The easiest way for foreigners is open accout at brokerage supporting Stuttgart's derivate exchange Euwax. You have wide range of warrants & certificates either for blue chips or index PX50. Commissions starting from 17 EUR. There is also way to trade the same instruments directly with emitent. Then, starting from 9 EUR.
Apart from that you can open account with czech brokarage like FIO, ATLANTIK FT, BROKERJET and trade on Prague stock exchange.

DivX - one of the IPO's 2006

DivX (DIVX) is currently trading near its lows since it's IPO on September 21, 2006. Looking at the chart pattern, the recent double bounce off of support could indicate a turn around. This stock has been taking step down from its high at 31.89 all the way down to 19.47, so much that people have forgotten about it.

Morgan Stanley expectation

As last week big rivals Meryll Lynch ( MER) and J.P. Morgan (JPM) beat the street for Q1 (EPS 2.40), altogether with amazing Q4 there is a strong potential for Morgan Stanley (MS). Even if Q2 is not seasonally the best one, analyst expectations (EPS 1.63-2.23) are quite low and we can be at least at the higher of this range.
Company is also nowadys traded at very good discount. P/E 10 is the lowest in industry together with Goldam Sachs (GS). Market price is approaching all time high reached on February before "China sell-off".
sentiment: buy