You are now logged out.
This Turkey Is All White Meat
The ADR Alert
Tuesday, March 30, 2004
By Alexander Green, Investment Director
Email – 5
** This Turkey Is All White Meat
The basic premise of the International Trader is this. We
want to ride the fastest-growing, fastest-moving companies
in international markets, for maximum short-term gains.
In the first month, we picked up four companies that fit
the bill: Qiagen (Nasdaq: QGENF), PetroKazakhstan (NYSE:
PKZ), Southern Peru Copper (NYSE: PCU) and Nam Tai
Electronics (NYSE: NTE).
Today we’re adding a fifth: Turkcell Iletisim Hizmetleri
AS (NYSE: TKC). (Let’s just call it Turkcell for short,
shall we?)
Based in Istanbul, Turkcell is the leading provider of
mobile voice and data services in Turkey. The company
covers 81 cities and the majority of the country’s tourist
areas and highways.
And business is brisk, to put it mildly. The company has
more than 19 million customers. In the nine months through
September, sales rose 25% to $1.84 billion. And earnings
soared 253% to $229.6 million. Management cites both a
sharp increase in subscribers as well as higher phone
usage.
Already the company has expanded beyond Turkey into
Azerbaijan, Georgia, Kazakhstan, Moldova and Northern
Cyprus. Now the company is even set to conquer the Iranian
market. Last month Turkcell announced it won the GSM
License Tender in Iran. And although there are more than
70 million Iranians, mobile phone penetration is only 4%.
You might imagine a cell phone company based in Turkey
would be somewhat antiquated. Just the opposite is the
case. Turkcell’s technology is state-of-the-art. Its
satellite-based service allows customers “roaming” in 141
countries.
The company’s financials are solid too. Operating margins
top 20%. Management is earning a respectable 15% return on
equity. And the company is sitting on more than $700
million in cash.
I estimate that Turkcell’s earnings will grow more than 50%
in the year ahead. And yet the stock is selling at less
than 14 times prospective earnings.
That’s too cheap to pass up.
***Action to Take***
Buy Turkcell (NYSE: TKC) at $36 or better. And place a
sell stop at $29 for protection. There are no options on
this one for speculators to consider.
If you have any questions, feel free to call one of our VIP
Trading Services representatives at 888.570.9830 (toll
free) or 410.223.2679, or Pillar One Partner
Greg Galloway at 800.438.3040 or 407.667.4729.
————————————————————
Current Portfolio:
Stock: Turkcell (NYSE: TKC)
Country: Turkey
Current Price: New
Comment: Buy at $36.00 or better. Place a sell stop at $29.00.
Stock: Nam Tai Elec. (NYSE: NTE)
Country: Hong Kong
Current Price: $24.58
Comment: Buy. Sell stop is $18.00.
Stock: South. Peru Copper (NYSE: PCU)
Country: Peru
Current Price: $39.44
Comment: Buy. Sell stop is $31.00.
Stock: PetroKazakhstan (NYSE: PKZ)
Country: Canada
Current Price: $27.87
Comment: Buy. Sell stop is $24.00.
Stock: Qiagen (Nasdaq: QGENF)
Country: Netherlands
Current Price: $13.00
Comment: Buy. Sell stop is $11.00.
————————————————————
Bio:
Alexander Green is the Investment Director of The Oxford
Club. A Wall Street veteran, he has over 16 years
experience as a research analyst, investment advisor, and
professional portfolio manager. Mr. Green is also
considered one of the most talented financial writers in
the business. He’s been featured on “The O’Reilly Factor,”
profiled by Forbes and Marketwatch.com, and has written for
Louis Rukeyser and several other leading financial
publications. He currently writes and directs The Oxford
Club Communiqué, the Oxford Insight e-letter, and four
elite trading services: one focused on momentum stocks,
another focused on companies with significant insider
buying, another dedicated to international growth stocks
and another focused on short-selling fundamentally flawed
companies. Mr. Green is also a top-rated speaker at
financial conferences around the country.
————————————————————
Copyright – 2004 The Oxford Club, LLC. The Oxford Club does not act as
an investment advisor or advocate the purchase or sale of
any security or investment. All Agora employees and agents
must wait 24 hours after an Internet publication prior to
following an initial recommendation. And for hard-copy-
only publications, 72 hours after the publication is
mailed. The Oxford Club expressly forbids its writers from
having a financial interest in any security recommended to
its readers. Investments recommended in this letter should
be made only after consulting with your investment advisor
and only after reviewing the prospectus or financial
statements of the company. The Oxford Club provides its
members with unique opportunities to build and protect
wealth, globally, under all market conditions. The
executive staff, research department and editors who
contribute to The Club’s recommendations are proud of the
reputation The Oxford Club has built since its inception in
1984. We believe the advice presented to its members in our
published resources and at our meetings and seminars is the
best and most useful available to global investors today.
The recommendations and analysis presented to members is
for the exclusive use of members. Copying or disseminating
any information published by The Oxford Club, electronic or
otherwise is strictly prohibited. Members should be aware
that investment markets have inherent risks and there can
be no guarantee of future profits. Likewise, past
performance does not assure future results. Recommendations
are subject to change at any time.
Investor Bulletin
