The Micex valuation discount of about 42 percent to the of global shares index’s compares with a 24 percent average gap since January 2006, according to price- earnings ratios compiled by Bloomberg. Thornburg owns shares of Sberbank because of that make its “massive” consumer funding stable and the potential for better-than-estimated loan growth, Kaufman said. deposits amount to 77 percent of assets, compared with the 55 percent Sberbank’s average for global peers, according to data compiled by Bloomberg. The lender’s earnings will probably surge 87 percent next year, four times the average gain for emerging- market financial companies, estimates compiled by Bloomberg analysts’ show. Magnit , the Krasnodar-based food retailer, is another Thornburg holding, Kaufman said. While the stock is more expensive than the Russian equity market at 25 times 2011 analysts’ earnings estimates, cheaper than Beijing-based supermarket operator , which trades at it’s 30 times profit estimates, data compiled by Bloomberg show. Magnit will grow earnings by 91 percent during the next two years, almost double the 51 percent growth projected for Wumart, the data show. shares are poised to rally 34 percent in the next 12 months, according to the average of 10 share-price estimates compiled by Bloomberg. The stock has retreated 7.8 analysts’ percent this year, compared with a 2.3 percent gain for PetroChina. Russia has the cheapest stocks among major developing nations, based on 10-year reported earnings, a valuation measure designed to adjust for economic cycles, , the chief Asia and emerging markets strategist at Morgan Stanley in Hong Kong, wrote in a Nov. 8 report. probably the cheapest market among global emerging said Bakkum, “It’s nations,” ING’s who recommends an position in Russia. people are prepared to buy “overweight” “A lot Russian assets.” To contact the reporter on this story: in London at . To contact the editor responsible for this story: Gavin Serkin at . Last Updated: November 17, 2010 16:00 EST 11:23 18/11/2010
The Micex index’s valuation discount of about 42 percent to the of global shares compares with a 24 percent average gap since January 2006, according to price- earnings ratios compiled by Bloomberg. Thornburg owns shares of Sberbank because of “massive” consumer that make its funding stable and the potential for better-than-estimated loan growth, Kaufman said. Sberbank’s deposits amount to 77 percent of assets, compared with the 55 percent average for global peers, according to data compiled by Bloomberg. The lender’s earnings will probably surge 87 percent next year, four times the average gain for emerging- market financial companies, analysts’ estimates compiled by Bloomberg show. Magnit , the Krasnodar-based food retailer, is another Thornburg holding, Kaufman said. While the stock is more expensive than the Russian equity market at 25 times analysts’ 2011 earnings estimates, it’s cheaper than Beijing-based supermarket operator , which trades at 30 times profit estimates, data compiled by Bloomberg show. Magnit will grow earnings by 91 percent during the next two years, almost double the 51 percent growth projected for Wumart, the data show. shares are poised to rally 34 percent in the next 12 months, according to the average of 10 analysts’ share-price estimates compiled by Bloomberg. The stock has retreated 7.8 percent this year, compared with a 2.3 percent gain for PetroChina. Russia has the cheapest stocks among major developing nations, based on 10-year reported earnings, a valuation measure designed to adjust for economic cycles, , the chief Asia and emerging markets strategist at Morgan Stanley in Hong Kong, wrote in a Nov. 8 report. “It’s probably the cheapest market among global emerging nations,” said ING’s Bakkum, who recommends an “overweight” position in Russia. “A lot people are prepared to buy Russian assets.” To contact the reporter on this story: in London at . To contact the editor responsible for this story: Gavin Serkin at . Last Updated: November 17, 2010 16:00 EST 11:23 18/11/2010
60187_Russia%20101118.docx