{"id":44099,"date":"2013-11-13T05:35:07","date_gmt":"2013-11-13T10:35:07","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44099"},"modified":"2013-11-13T05:35:07","modified_gmt":"2013-11-13T10:35:07","slug":"9-3-billion-reasons-to-buy-these-two-cheap-unloved-stocks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/13\/9-3-billion-reasons-to-buy-these-two-cheap-unloved-stocks\/","title":{"rendered":"9.3 Billion Reasons to Buy These Two Cheap, Unloved Stocks"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

On Monday, the Dow closed at a new all-time high. That’s the 35th time it’s pulled off such a feat this year.<\/p>\n

While I’ll take soaring prices over slumping ones any day of the week, it does make finding bargains more difficult.<\/p>\n

And that’s a problem, since the secret to investing is truly as simple as always<\/em> buying low and selling high.<\/a><\/p>\n

You’re in luck today, though. Because I’ve dug up two<\/em> cheap investments, one of which is operating in the fastest-growing industry in the world.<\/a><\/p>\n

On such merits, there\u2019s really only one direction for share prices to head from here.<\/p>\n

From Russia With Love<\/b><\/p>\n

The thought of investing in Russia right now probably makes you cringe. Even the pundits find it hard to muster up any optimism.<\/p>\n

\u201cAssuming some \u2018optical\u2019 recovery in the fourth quarter, [Russia\u2019s] annual GDP growth is unlikely to come higher than 1.5%,\u201d says Vladimir Kolychev, Chief Economist at VTB Capital in Moscow.<\/p>\n

(And we thought U.S. GDP growth prospects were bad!)<\/p>\n

Of course, we know that economic growth isn\u2019t a necessary precursor for a meaningful stock market rally<\/a>. Undeniably cheap equity prices, on the other hand, are of utmost importance.<\/p>\n

And just like the United States in early 2009, that\u2019s something Russia definitely<\/i> possesses right now.<\/p>\n

As I shared last week, Russian stocks<\/a> are the cheapest among all the emerging market countries in the world.<\/p>\n

Granted, Russian stocks typically<\/i> trade at a discount to most emerging markets. But not by this much. A recent study by JP Morgan<\/b> (JPM<\/a>) found that Russian stocks trade four standard deviations below the average for emerging markets.<\/p>\n

I\u2019m sure the Kremlin isn\u2019t happy about these low valuations. But data never lies!<\/p>\n

The Market Vectors Russia Fund <\/b>(RSX<\/a>), which I shared before, represents a no-hassle way to capitalize on multiple dirt-cheap Russian stocks with a single investment. But as subscriber, Jeff W., pointed out in an email, \u201cThe fund is heavily weighted to oil and, in case you haven\u2019t noticed, oil isn\u2019t performing too well.\u201d<\/p>\n

He\u2019s right. Roughly 42% of the fund\u2019s investments are in energy companies, which is to be expected. After all, Russia is the world\u2019s largest energy exporter.<\/p>\n

I\u2019m guessing that subscribers like Jeff are more interested in a cheap Russian investment, operating in a sector with the most robust growth forecasts.<\/p>\n

Look no further than VimpelCom<\/b> (VIP<\/a>).<\/p>\n

Go Mobile or Go Home<\/b><\/p>\n

Forget difficult, it\u2019s impossible<\/i> to find a more compelling growth opportunity in the world than the exploding use of mobile devices<\/a>.<\/p>\n

Every time new data is released, it becomes more and more obvious how big of an opportunity we\u2019re talking about here.<\/p>\n

Case in point: The latest figures from Ericsson AB indicate that there will be 9.3 billion mobile phone users worldwide by 2019, up from \u201conly\u201d 6.3 billion at the end of 2012.<\/p>\n

Now, VimpelCom stands to benefit from this growth because it\u2019s one of the largest mobile companies in the world. Its operations span 18 countries, home to almost 800 million people.<\/p>\n

And Russia happens to be the company\u2019s biggest market. That\u2019s a good thing for VimpelCom, given that AC&M Consulting reports that Russia\u2019s mobile sales climbed 9% last year, while mobile data revenue surged 33%.<\/p>\n

Sealing the Deal on Future Growth<\/b><\/p>\n

A few weeks ago, VimpelCom reached a new agreement with Apple<\/b> (AAPL<\/a>). As of October 25, it\u2019s officially selling the latest iPhones – the 5S and 5C – in Russia.<\/p>\n

That\u2019s bound to boost VimpelCom\u2019s overall sales in the coming quarters. Especially since \u201cApple has a huge army of fans in Russia,\u201d according to Evgeny Golosnoy, analyst at IFC Metropol in Moscow.<\/p>\n

Last month, VimpelCom also moved its listing from the NYSE to the Nasdaq exchange and joined the Nasdaq-100 Index. The transition all but guarantees that more and more investors will start paying attention to the stock.<\/p>\n

To top it off, it\u2019s trading for just 9.3 times forward earnings. That works out to a 42% discount to the average U.S. stock. Plus, it sports a dividend yield north of 6%.<\/p>\n

How many U.S. stocks do you know that can go head-to-head with those fundamentals? Not many.<\/p>\n

Bottom line: As Luis Saenz at BCS Financial Group says, \u201cVimpelCom has been an overlooked orphan in the market and that is changing now. Many more eyes will be on the stock now.\u201d<\/p>\n

Indeed! But that also means the bargain won\u2019t last long. So don\u2019t delay\u2026<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post 9.3 Billion Reasons to Buy These Two Cheap, Unloved Stocks<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: 9.3 Billion Reasons to Buy These Two Cheap, Unloved Stocks<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com On Monday, the Dow closed at a new all-time high. That’s the 35th time it’s pulled off such a feat this year. While I’ll take soaring prices over slumping ones any day of the week, it does make finding bargains more difficult. And that’s a problem, since the secret to investing is truly … <\/p>\n

Continue reading “9.3 Billion Reasons to Buy These Two Cheap, Unloved Stocks”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-44099","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/44099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=44099"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/44099\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=44099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=44099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=44099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}