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.
Dixy
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.
Sector: Soda
According to our estimates, the power holding's intention to oblige strategic investors to support genco additional share issues is interesting both to UES itself and also to strategic investors. After the list of potential takeover targets is determined, Gazprom, SUEK and NorNickel intend to meet their targets in order to gain control in these gencos and this agreement coud simplify the ways for them to achieve their objectives, since strategic investors loyal to the power industry reform could have some preferences when additional share issues are placed.
OGK-5