Gazprom: Betting On High Dividend Yield And High Earnings Growth
By Katchum:Gazprom (OGZPY.PK) is the world's largest gas business engaged in natural gas, gas condensate and oil prospecting, production, transmission, processing and marketing. The company operates both inside and outside Russia. I have been very bullish on Gazprom because the fundamentals of this company were very positive. You can read my previous analysis here. I noted that Gazprom was severely undervalued as the company traded at a P/E of 3.5, handed out a dividend of 2% and had a price to book value of 0.6. Since that article, the stock price of Gazprom has gone down 15% (Chart 1). I recognize that was a bad call. The decline has much to do with the worsening conditions in the eurozone.So what has actually changed for Gazprom since January 2012?
First off, Russian natural gas prices hasn't gone down since January 2012, it has basically been flat (ChartComplete Story »