Daily analyst comments

Diksi Group's 7M07 results reflected the company's 43% y-o-y topline growth. We are upbeat on the company's plans to open 80 stores by year-end 2007 and boost margins to 24% by the end of 2007. However, we do not expect the company's stock valuations to climb significantly in the short term.

Renova Orgsintez has executed an option to acquire 75% in Novocheboksarsk-based Khimprom which was purchased in spring 2007 and become the company's new owner. The value of the transaction was not disclosed. However, Renova Orgsintez could buy out a stake in Khimprom based on the company's previously announced valuation in the range of $275-300 mln which is nearly 3-fold as much as Khimprom's current market cap. If the transaction was implemented at this price, it could serve as a new benchmark for market participants in determining Khimprom's fair price which could push up the company's stock valuations.