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?
Chart 1: Gazprom (Micex)
First off, Russian natural gas prices hasn't gone down since January 2012, it has basically been flat (ChartComplete Story »