Mobile TeleSystems OJSC (ADR) (MBT) & More: Get Ready For Russian Stocks To Launch Into Orbit

Mechel OAO (ADR) (NYSE:MTL) is the riskiest of these three investments, but with the company nearly doubling its revenue since 2009, and with a dividend yield of approximately 7%, it’s nearly impossible to ignore this stock. Mechel OAO (ADR) (NYSE:MTL) is an integrated mining and steel company that focuses on producing steel, nickel, iron, and coal. Though revenue has increased substantially in comparison to the company’s chart, it’s best to keep this firm on the watchlist for at least another year before deciding to pick up shares.

Operating expenses exceeded revenue by about 10% last year, leading to a $1.5 billion loss. However, large expenses arise with exploration companies and it is best to look at a three-year timeline to determine if the company has profit margin under control. Profit was over 2% in those three years. While that is far from impressive, it gives you an idea of the overreaction the stock has experienced due to a single year’s earnings report.

To put it into perspective, during those same three years, the stock price decreased nearly 90%, despite nearly doubling revenue during that span. Take the short-term liabilities with a grain of salt.

These Russian stocks have reached absurdly low prices. So, while indexes in other nations, including BRIC, are near historic highs, Russia looks to be undervalued, and that could be your golden opportunity to get in now before the mainstream learns that Russia is ready to launch.

The article Get Ready for Russian Stocks to Launch Into Orbit originally appeared on Fool.com and is written by Phillip Woolgar.

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