I waited for this listing for about a month, and slowly saved up money in a brokerage account. And today I also had to negotiate with Tinkoff. But first things first.
Before Globaltrans traded only on the London Stock Exchange and was not available to our private brother (only qualified investors). And foreign investors were not interested in the shares of a Russian company (for which, in principle, they are grateful).
Listing on # MMVB happened, the paper is traded in the form of GDRs (Global Depositary Receipts) in rubles.
The company has strong financials and very generous dollar dividends.
The company’s clients are 500+ industrial enterprises, including the largest Russian oil and metallurgical enterprises, such as: Rosneft, TMK, Gazpromneft, Evraz Metallinvest, MMK, ChTPZ and others.
Average trading volume (on the London Stock Exchange):
Share price (on the London Stock Exchange):
Capitalization (excluding listing on the MICEX):
Official Free-float (free float):
The share capital of Globaltrans consists of 178,740,916 ordinary shares.
The GDR is traded in a lot: 1 lot = 10 shares.
In the first half of this year, the company’s performance declined due to the general situation with the pandemic and the measures taken. But already in the III quarter the company recorded the beginning of a return to the previous indicators.
By main activity:
According to the main multiples, the company is undervalued and is trading below the fair price. This, by the way, is the merit of foreign investors, who do not like the shares of Russian companies.
After listing on the MICEX, the situation, of course, can develop in different ways. But in general, an increase in capitalization is expected due to the inflow of investment capital from the home (for the company) market.
It should be noted that in addition to the low debt burden, the debt itself is predominantly denominated in rubles, while the company can keep funds in other currencies with which it directly works (due to its presence in other countries).
Since 2017, Globaltrans has a stable dividend history.
About 90 rubles are paid per year. dividend per share.
Payments are made 2 times a year: in September and in April.
The annual dividend yield of the company’s shares at the current price is about 15%.
The debt burden remains comfortable and allows maintaining a high dividend yield in the medium term.
The paper, as already mentioned, is now available in rubles, but dividends will still come in dollars.
The company is registered in Cyprus (Nicosia). Since taxation in that country is 0%, you will have to pay 13% tax on dividends in favor of the Russian Federation on your own (by registering 3-NDFL on the FTS website).
I would like to note that I have Globaltrans — already the third GDR in my investment portfolio (there are also RusAgro and Polymetal), and with others the same story. So when the time comes to pay taxes on dividends on all these securities and a calculator for 2020 appears on the FTS website, I will write a review with instructions on this topic.
The program was approved by the shareholders’ council in May 2020.
At the moment, 0.04% of the planned 5% has been bought out. The buyback will last until May 12, 2021.
As I said, I have been waiting for this listing on # MMVB for about 1-1.5 months, since the company has very good indicators and dividends. In general, the scale of the company is impressive, but it is not overvalued.
In part, this purchase is due to an intuitive choice for me. Yes, I am aware that mathematics is above all, but I wanted to buy this company even before I studied all the multipliers and indicators.
Again, I look at Globaltrans shares solely in terms of long-term ownership.
The main risks are associated with the market as a whole:
First, the end of the year and the US electoral race create strong volatility in the market.
Secondly, the company is highly dependent on the activities of other (500+) companies, as it provides transportation services. In the event of the height of the second wave of the pandemic, new restrictive measures and a drop in the profitability of client companies, Globaltrans will also face difficulties.
In the morning, even before the start of trading, I wrote to Tinkoff technical support a question about adding paper and received the answer that it was not in the plan. After a long correspondence, during which I had to say a lot about TI, I went to the gym with annoyance. And upon my return, I discovered two things: first, the papers were added; secondly, during this time they fell by 4% of the starting price. So it turned out to take them into the portfolio even cheaper than planned.
Thank you for reading. I hope the review was helpful.
If so, you will like it.