It gets no respect for many reasons.
#1 people just got burned by China, now we are talking about a Russian company and people dont trust Russia.. However Goldman Sachs said to get out of China and get into Russia especially companies involved with Construction of Infrastructure such as Roads and new home and apartment/condo building.
UNRH is exactly in this business, roads and new Condos.
#2 Its summer time, have you heard of the term "Sell In May and Go Away"??? Well summer traditionally trades on light volume. Plus the fact that the government of the USA cant get their head out of their butt's this summer has been especially bad for the market. However, since the market is cyclical and after Labor day Fund Managers come back to buy bargain stocks on the Large Caps, it usually frees up money for others to start to look for bargain small caps. UNRH is in my opinion the best bargain small cap on the market.
#3 Construction companies in the US are getting no respect right now, Brokers and Investors do not understand that just because our construction market is not booming that does not mean that in other countries the construction might be booming. In the case of Russia, they have the 2014 Winter Olympic games ahead which means they need to build Stadiums, Roads and Hotels for that event. Then they have the World Cup in 2018 which means they need to build 12 more Stadiums along with roads and hotels.
UNRH is 25.5% owned by the government. UNRH builds Roads and Bridges. UNRH builds high rise hotels and condos. UNRH has a Patented product called Prudon 494 which is used to harden roads bridges and pipeline paths.
Who do you think the government is going to give the bids to first? I would think UNRH would be a top candidate considering they have already in hand US $1.2 billion in contracts for the next 4 years. UNRH has been a solid company for more than 40 years and a solid public company for 3. Numbers are Stellar and getting better every year.
#4 Last people think Russia is run by the mafia. Well if that is true then so it is also true that Las Vegas in run by the mafia, so is NYC, so is Washington DC and Chicago and Miami.
Get over it people, this stock is so highly undervalued its ridiculous. UNRH is an incredible buy under $5, its only 1.24 now. After $5 they should get a NASDAQ listing which means that fund managers can buy. So lets be realistic, give it a PE of 15 that would mean an $18 stock price right now.
Why would i say a PE of 15? Because there are very few Russian stocks traded in the USA, and that means there is room for this stock on an Index of Russian stocks. Get it up on an Index and all the funds will automatically buy it. Give it a PE of 15 at least, maybe 20, maybe 30. Industry average is 33.
Enough said, Go Buy Some Stock, or miss it if you dont. I believe $5 is an underestimate by far.
