Tuesday, July 31, 2007

Which Czech company is hot pick?

Which Czech shares do I like from long term perspective?

(more details at: www.stockweb.blogspot.com)

I am bearish with the highest growing blue chip in last 12 months (70%) Central European Media (NASDAQ: CETV). Main money maker TV Nova is loosing share in favour of TV Prima and also price for advertising is dropping.

On the other side I still like Zentiva (OTC: ZTVAF.PK ; LSE: ZEND) which in recent week lost 16% and nulify 12 months performance. This was due to announcement that they will not fulfill expected earnings results due to price regulation in Czech Republic. Still it is great expanding company doing acquisitions in other countries. Profit share from activities abroad is increasing every quarter. I believed will be going up with recovery in Turkey (last acquisition). Next, I like is Telefonica O2 (PSE: BAATELE) mainly because of high dividend policy (9%). And last bullish is energetic CEZ. Reasons: we are in the middle of company shares buyback, electricity prices are raising, company continue acquisitions in CEE Europe (Bulgaria Belene tender..)

I am neutral with banks (Erste Bank, Komercni Banka); high PE ratio (30, 25), negative sentiment worldwide about financials having impact.

As US investor you can also participate with closed end funds CEE and RNE having some Czech holdings. Generally I think CEE index will be overperforming US indices.


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