Daily analyst comments

Novoship's financials reflect unfavorable conditions on the tanker freight market. Meanwhile, although earnings growth eased, the company confirmed its ability to operate in challenging market environment. According to our estimates, the released financials are in line with market consensus and their negative impact on Novoship stock valuations will be limited.

On November 27, the third round of auctions kicks off to divest stakes in sales companies, including the power holding's interest in Tulskaya Sales Company. The starting price of the stake in the Tula-based company puts the company's valuation at $34 mln. According to our estimates, the company's fair price is $47 mln and therefore TGC-4 will be interested in an opportunity to acquire the sales company at a price, which slightly exceeds the starting price.

Given aggressive expansion of E.On and Enel on the domestic utilities market, other European energy majors will likely become more active. In October, parameters were announced of the utility's additonal stock offering of 136.5% of the current charter capital. Thus, a new investor will receive up to 57% in the company's charter capital after the additional shares are floated. The utility's flotation will most likely will turn into the priciest transaction in the TGC segment. Specifically, Gazprom acquired Mosenergo's additional shares based on $570/kW.

Severstal has disclosed some details of its investment program, which calls for at least $10 bln investments to roll out production facilities in the coming years. Severstal remains focused on the domestic market and around 80% of total investments are to be earmarked for Russian enterprises.

The auto maker's 9M07 financials underscore the company's dynamic growth and cost-containment efforts. As a result, we can see nation's largest truck manufacturer reported stronger sales profit and margin.

Akron Holding would like to sell around 20% of its shares in an IPO in 2008. Akron plans to switch to a single share with its affiliate Dorogobuzh with a view to fixed asset restructuring in the run-up to the planned equity offering. Akron's IPO will strengthen the investment appeal of its shares and the company will raise the proceeds necessary to accomplish its investment program.