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KEY STOCKS FOR THE WEEK 20/08—24/08
City Service, Lithuanian facilities management company, will announce its H1 result on Thursday. We estimate that an EBITDA figure of LTL 8.5M should satisfy the investors, and provide the much required boost in confidence on company’s ability to deliver on its IPO promises. Being the first post-IPO interim financial report, we see it as a very important factor for mid term price development.
Sanitas, Lithuania based manufacturer of pharmaceuticals, is to announce its July result on Thursday. We expect the EBITDA margin to start slowing down during H2, with July result already as low as 30%, for a total of LTL 7.4M. Unexpected deviations from the figure should lead to a corresponding price correction, yet question remains whether that would be enough to outweigh general market current.
After FED’s late Friday announcement of cutting discount rates to 5.75%, we have seen markets around the globe react swiftly to the good news, with some indices witnessing sky-high increases. We expect the tendency to extend to Baltic markets immediately after opening, and possibly lasting all the way until the second half of the week. Positions that should benefit the most are those that suffered largest setback last week, without any change in underlying fundamental value. PTA Grupp, Merko Ehitus, Arco Vara, Olympic Entertainment Group, Siauliu Bankas, Baltika, Invalda, Apranga, and TEO LT are all expected to demonstrate impressive rebounds, should the positive expectations last for the better part of the week.
US HOUSING CRISIS CONTAMINATES GLOBAL MARKETS... AS PHARMACEUTICAL STOCKS FLOURISH
Lifosa, Lithuanian supplier of fertilizers, is enjoying what seems to be so far the best year in company’s history. The company announced to have more than doubled its y/y sales during July, for a total of LTL 129.7M. At the same time, fuelled by +28% price jump of its main product, 7-month sales increased by +24.9% to a total of LTL 465.6M. Although a cyclical improvement, coupled with stock’s small float and lack of fund interest, it is hardly surprising that the share price managed to be one of only two winners in the week of total decline, closing +6.9% higher than the week before.
Merko Ehitus, Estonian construction company, was, as expected, one of most adversely affected stocks in the market, with share price down by –11% after announcing withdrawal of a bid to build Latvian national library in Riga, a project worth EEK 6B. Notably, however, this does not fundamentally change future prospects of the company, and hence the share price is expected to rebound in the mid term, after market equilibrium is restored.
City Service, Lithuanian facilities management company, will announce its H1 result on Thursday. We estimate that an EBITDA figure of LTL 8.5M should satisfy the investors, and provide the much required boost in confidence on company’s ability to deliver on its IPO promises. Being the first post-IPO interim financial report, we see it as a very important factor for mid term price development.
Sanitas, Lithuania based manufacturer of pharmaceuticals, is to announce its July result on Thursday. We expect the EBITDA margin to start slowing down during H2, with July result already as low as 30%, for a total of LTL 7.4M. Unexpected deviations from the figure should lead to a corresponding price correction, yet question remains whether that would be enough to outweigh general market current.
After FED’s late Friday announcement of cutting discount rates to 5.75%, we have seen markets around the globe react swiftly to the good news, with some indices witnessing sky-high increases. We expect the tendency to extend to Baltic markets immediately after opening, and possibly lasting all the way until the second half of the week. Positions that should benefit the most are those that suffered largest setback last week, without any change in underlying fundamental value. PTA Grupp, Merko Ehitus, Arco Vara, Olympic Entertainment Group, Siauliu Bankas, Baltika, Invalda, Apranga, and TEO LT are all expected to demonstrate impressive rebounds, should the positive expectations last for the better part of the week.
US HOUSING CRISIS CONTAMINATES GLOBAL MARKETS... AS PHARMACEUTICAL STOCKS FLOURISH
Lifosa, Lithuanian supplier of fertilizers, is enjoying what seems to be so far the best year in company’s history. The company announced to have more than doubled its y/y sales during July, for a total of LTL 129.7M. At the same time, fuelled by +28% price jump of its main product, 7-month sales increased by +24.9% to a total of LTL 465.6M. Although a cyclical improvement, coupled with stock’s small float and lack of fund interest, it is hardly surprising that the share price managed to be one of only two winners in the week of total decline, closing +6.9% higher than the week before.
Merko Ehitus, Estonian construction company, was, as expected, one of most adversely affected stocks in the market, with share price down by –11% after announcing withdrawal of a bid to build Latvian national library in Riga, a project worth EEK 6B. Notably, however, this does not fundamentally change future prospects of the company, and hence the share price is expected to rebound in the mid term, after market equilibrium is restored.
