Invest like Kostolany now

Tuesday, 13. December 2022

New opportunity in Kazakhstan as an alternative for Russia –

There seems to be no end to the Ukraine war. Russia continues to bomb the infrastructure in Ukraine, causing temporary power cuts in many cities. The EU now wants to approve another 2 billion euros for arms deliveries to Ukraine out of a total package of 18 billion euros.

As a result of the Ukraine war and the sanctions packages against Russia, Russian shares and also Russian bonds are not tradable for Western investors at the moment. The same applies to Russia funds, Russia ETFs and Eastern European funds with Russian shares. But one should by no means write off the assets. Stock market guru Andre Kostolany made a fortune with tsarist bonds that had already been written off. The broker Zerich Securities Ltd. now offers the purchase of Gazprom bonds via the OTC market. But first you have to open an account with Zerich Securities Ltd. Those who have not yet exchanged their Russian ADRs should hurry now, because the “Russian way” ends on 31 December 202-. This is still possible for some shares via the broker Freedom Finance. Here too, however, an account must first be opened, which can be done easily and quickly via the following link: https://freedom24.com/invite_from/2952896 . In addition, new opportunities for investing money in Kazakhstan are now opening up.

Andreas Männicke also gives his assessments of the new opportunities in his stock market letter EAST STOCK TRENDS (www.eaststock.de) and in his new EastStockTV video, episode 203 at www.YouTube.com,

Buy Russian bonds now via Zerich Securities Ltd.

The late stock market guru Andre Kostolany made a fortune with Tsarist bonds that supposedly seemed worthless. These were Russian bonds that the Tsar used at the time to finance the construction of railways and later for war. However, after the October Revolution in 1917, Lenin announced that the Soviets would not pay for the dethroned Tsar. It was mainly French savers at the time who bought up these Tsarist bonds and then believed they were worthless. The bonds were thrown away and the coats turned into waste paper. The prices sank into the bottomless pit, but there were still prices on the Paris stock exchange for them.

Kostolany seized the opportunity and bought the bonds for 20,000 gold marks. After the bonds subsequently recovered in value, Kostolany turned the 20,000 gold marks into a fortune of 2 million gold marks and thus became rich. A similar opportunity could now arise with Russian bonds. Here one has to distinguish between corporate bonds like Gazprom’s and government bonds. These are not tradable on Western stock exchanges at the moment, but they are on the Moscow stock exchange. There are also indicative prices on Bloomberg.

The Cyprus-based broker Zerich Securities Ltd. now offers that clients of Zerich Securities can also buy Russian bonds on the OTC market and also sell them later. Prices are now around 70. If the respective companies do not go bankrupt, very high yields can now be achieved. With companies like Gazprom, the probability of the company going bust is now very low, especially since the state has a majority stake. For some companies, the bonds are being replaced by new ones. You can now buy the Russian bonds through Zerich Securities Ltd. by placing an order there. Before doing so, however, you must open an account through their Mind-Money portal, which is possible via the following link https://trade.mind-money.eu .

Of the 31 Russian Eurobonds, 23 voted to remain or be replaced by new bonds. The decisive factor for trading is the indication at Bloomberg. The prices are now around 60 to 70. But you can also participate in IPOs via Zerich Securities, as was the case recently with Porsche. After the IPO, Porsche’s share price rose by 35 per cent from € 81 to € 110 and has now consolidated again at € 100.

New opportunities in Kazakhstan

As an alternative for Russian ADRs, ADRs or also original shares from Kazakhstan now offer themselves. Freedom Broker is currently examining whether a connection directly to the Almaty stock exchange is technically feasible here. Freedom Broker is the second largest broker in Kazakhstan and has special expertise here. Incidentally, there are already a number of shares from Kazakhstan that are very promising and are traded on western stock exchanges as ADR/GDR on the London Stock Exchange, such as the fintech bank Kaspi.kz, whose share price has already risen by over 50 percent since the low in the summer. Other interesting stocks from Kazakhstan are discussed in the stock letter EAST STOCK TRNDS (www.eaststock.de). The KTX index already rose by over 80 percent in 2021, making it one of the top performers among the world’s stock exchanges.

But also those who still hold Russian ADR and would like to convert them into original Russian shares should open an account with the broker Freedom Broker, who can help you with this. This can be done very easily via the following link: https://freedom24.com/invite_from/2952896 .  The deadline for the “Russian way” is 31 December 2022, so you need to hurry. But for most shares the books are already closed.

Inform first, then invest

Inform yourself now in detail about the background and the development of the Ukraine/Russia crisis but also about the future recovery potential of undervalued shares from Eastern Europe. There are also new opportunities in the Baltic States, Kazakhstan, Georgia and Ukraine.

Review: In 2018, 10 stock markets from Eastern Europe were among the best performing stock markets in the world, all clearly outperforming the DAX and also the US stock market. The Moscow Stock Exchange was the clear outperformer among all world stock markets in 2019, with a gain of over 46 per cent in euro terms. However, the Bucharest Stock Exchange (Romania) also rose by over 32 per cent in 2019. The stock markets in South-Eastern Europe and also in the Baltic countries remained very stable on the plus side (Croatia +13 per cent). In 2020, 6 stock exchanges from Eastern Europe were among the 30 best performing stock markets in the world and last year even 11 stock exchanges from Eastern Europe. In 2021, shares in Kazakhstan rose by over 80 per cent.  This year, 6 Eastern European stock markets, mainly from the Balkans, clearly outperformed the DAX. So even after the Ukraine war, it is still worthwhile to look beyond the horizon to Eastern Europe.

Order now a trial subscription (3 issues by e-mail for only 15 €) of the monthly stock exchange letter EAST STOCK TRENDS (EST) with another Ukraine/Kazakhstan/Russia special and a dividend special as well as with a lot of background information and new investment suggestions such as the “Stock of the Month” and lucrative certificates at www.eaststock.de, there under Stock Exchange Letter.  The next EST will be published at the end of December.

TV/radio notes: The last radio interview was on 12 November 2022 and previously on 31 October on Börsen Radio Networks.  Also watch the latest EastStockTV video on YouTube about the Ukraine war and the new outperformance opportunities of the Eastern European stock markets. Every 14 days, Mr. Männicke also appears on Capital-Manager.com’s “Finanzstammtisch”, most recently on 11 November 2022. You can download the interviews and videos at www.eaststock.de, under the heading “Interviews”, as well as the videos from EastStockTV. By the way: have you already subscribed to the EastStockTV YouTube channel?

 

Subscribe now for free to the Andreas Männicke Newsletter to receive the full content by email.

Archive columns

Services

EST Stock market letter

The stock exchanges of Central and Eastern Europe have been among the top performers among the world’s stock exchanges since 1998. In recent years in particular, many CEE stock exchanges have performed far better than the established Western stock exchanges. In 2019, for example, the Moscow Stock Exchange not only clearly outperformed the DAX and DJI, but also ranked among the 30 best-performing stock exchanges in the world.

Many investors have so far criminally neglected the CEE stock exchanges. Yet the selection of promising stocks is growing. Eastern Europe still has its future ahead of it.

Take advantage of your opportunities now!

  • analyses the most important trends on the CEE stock exchanges for you monthly on 30-60 pages.
  • looks not only at the established eastern stock exchanges, such as Moscow, Budapest, Prague and Warsaw, but also at the second-tier countries and the CIS republics
  • selects the most promising stocks for you from a fundamental and technical point of view and examines not only stocks but also other forms of investment such as funds, bonds, real estate, derivatives and certificates
  • draws attention to risks and distinguishes between conservative and speculative investment options.

The market letter “EAST STOCK TRENDS” is published monthly in a printed and electronic edition. The electronic edition is sent to you directly after the editorial deadline, which means it reaches you faster and is also more cost-effective.

Seminars

Several times a year, ESI-GmbH organises seminars on the topic of eastern stock exchanges and emerging markets together with renowned banks, issuing houses and stock corporations.