Does the price of Gazprom stock has a direct correlation with North Stream 2 project?

Sunday, Jul 28 2019 by

Hi fellows,

What would your opinion be about Gazprom shares? Doest it carry much of political risk and has too much correlation with North Strem-2 project?

Thanks in advance,
Andrew

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
1 thumb up
1 thumb down
Share this post with friends




2 Posts on this Thread show/hide all

danieles Sun 8:55pm 1 of 2

hi Andrew, by the nature of it  being a Russian company, it does of course carry a political risk. nothing new there but the reason for the stock having rocketed in the last 2 months is that at last the management(  which by the way has seen a lot of changes ) has finally accepted to increase the dividend to the norm in Russian cos wth stateownereship: 50% of IFRS results . for a company with traditionally very  poor asset allocation this is mega news since the less cash they have , the less value distructiv investments they are able to a make. Simples!!

| Link | Share
jwebster Mon 7:23am 2 of 2

The political risk for Gazprom is the Government ownership. The NS2 project is not the main event. Gazprom is very cheap on a PER basis because earnings have not traditionally been paid to shareholders. Noted they increased the dividend recently. Also the international oil price is on downward pressure. I think to own Gazprom you need a view on:

1. long term oil price
2. Potential (or not) for earnings to be paid to private shareholders
3. role of the government in Gazprom

Good luck

| Link | Share

Please subscribe to submit a comment





Stock Picking Tutorial Centre


Related Content

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis