Buying Shares in Russia

[dolivent]

Hi Guys,

Wondering if anyone's used a brokerage platform to buy Russian stocks from the Moscow Stock Exchange from Australia.

Cheers

 

[greggles]

I'm not sure I've ever heard of anyone doing that before. Russia is a strange place to invest directly. Did you have particular companies in mind or did you just want to invest in the Russian market overall with an ETF or other similar fund?

Some Russian companies are listed on other exchanges, so perhaps that might be a safer way to go about it?

 

[CanOz]

Hi Guys,

Wondering if anyone's used a brokerage platform to buy Russian stocks from the Moscow Stock Exchange from Australia.

Cheers

Russia is under a number of US/UN sanctions. Pretty sure buying shares in Russia comes under "investing in a risky state"....

You might want to re-think your strategy.

 

[dolivent]

Thanks for your responses guys. I was interested in DZRD. I am a Value Investor and this thing is more than 90% off at the moment with very strong fundamentals and so I was willing to take the punt.

Country risk is very high and I had my eye on Turkey and Indonesia but I find the Country risk and exchange risk is too high without nearly as high Margin of Safety in the price. I have tried with Monex, Interactive brokers, IG and phillips capital and none of them trade in that market.

 

[skyQuake]

Thanks for your responses guys. I was interested in DZRD. I am a Value Investor and this thing is more than 90% off at the moment with very strong fundamentals and so I was willing to take the punt.

Country risk is very high and I had my eye on Turkey and Indonesia but I find the Country risk and exchange risk is too high without nearly as high Margin of Safety in the price. I have tried with Monex, Interactive brokers, IG and phillips capital and none of them trade in that market.

They trade on the Moscow exchange. Its also at nowhere close to 52 week lows and volume is pretty terrible.

 

[Mr Bear]

Plenty of good assets in Russia trading below asset backing and on low pe’s. How long will it take for any of these stocks to realise their true value? Too much risk, too complicated, more of a bet that the political situation changes over the long term than value bet in my opinion..

 

[john5]

first hurdle is the currency, aud/rub rub/aud, to consider, also their inflation rate would need to be watched, presently 2.4

 

[systematic]

IB has 3 of the Russian ADR's trading on OTC: OAOFY, LUKOY & SGTZY.

SGTZY Surgutneftegas OAO seems to be the deep value play to me. Not just cheap, but passes some 'quality' standards as well (too good to be true?) Anyway, that's my limit on Russia!

 

[Scocat]

Thanks for your responses guys. I was interested in DZRD. I am a Value Investor and this thing is more than 90% off at the moment with very strong fundamentals and so I was willing to take the punt.

Country risk is very high and I had my eye on Turkey and Indonesia but I find the Country risk and exchange risk is too high without nearly as high Margin of Safety in the price. I have tried with Monex, Interactive brokers, IG and phillips capital and none of them trade in that market.

@dolivent, Did you end up buying Donskoy (DZRD)?

The shares spiked last week over 50 percent on the high volume. From what I can gather they are voting on a board spill in a couple of weeks and so may change dividend policy to payout instead of 100% reinvesting for growth.
https://www.tradingview.com/symbols/MOEX-DZRD/

What are your thoughts?

Disclaimer: I am holding these shares, so I am interested in others opinion... Both good and bad

Thanks in advance