A Post-Thanksgiving Helping of Turkey and Locking in a Pair of Triple-Digit Gains

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Turkcell is Turkey’s leading cell phone operator. In 2000, Turkcell became the first Turkish company quoted on the New York Stock Exchange (NYSE). With 34.8 million subscribers, Turkcell is big. It already stands as the third-biggest GSM operator in Europe and it recently leapfrogged Akbank, a local financial group, to become Turkey’s biggest company by market value. Turkcell also boasts a diverse international shareholder base that includes Nordic telecommunications company TeliaSonera, Russian private equity firm Altimo and unlisted Turkish conglomerate Cukurova.

Turkcell also is present in its surrounding markets. It has operations in the Ukraine, which recently posted profits for the first time. Turkcell also has operations in Central Asia and expects to increase its stake in its Fintur unit, which has mobile-phone networks in Kazakhstan, Georgia, Azerbaijan and Moldova.

Turkcell’s recent financial results reflect the success of its strategy and expansion. It recently announced that its third-quarter profit jumped 29% to $401.2 million on the back of a 44% rise in revenue. Backed up by both new subscriber additions and higher spending levels of existing subscribers, earnings before interest, tax, depreciation and amortization (EBITDA) rose 62% to $771.5 million. The subscriber base grew 13% and average revenue per user (ARPU) rose 26% to $15.3 due to a combination of a stronger lira (the Turkish currency) and price hikes. The company added one million mobile-phone customers in Q3 alone and management said it expects "double-digit" percentage revenue growth in lira terms next year. Given the lira’s appreciation against the dollar, that could translate into even higher growth in dollar terms. The company also has announced that it may repurchase shares and increase its dividend for this year, which should also support its stock price.

Exclusive  GLOBAL STOCK INVESTOR HOTLINE UPDATE 43

So buy Turkcell (TKC) at market today and set your stop at $19.50. Buy the April $25 call options (TKCDE.X) for even bigger upside. A word of warning. Turkey is a volatile market, and Turkcell is a volatile stock. It has moved as much as 11% in a single day in recent trading.

PORTFOLIO UPDATE

With your Vimpelcom options (VIQAY.X) nearing expiration, take the remaining profits of 123.08% here. But hold on to the stock for now, as this is the time of year when Vimpelcom tends to shine. We may get into some other options later. And with Mechel’s stock price soaring close to 10% on Friday, it’s a good time to lock in profits of 103.13% in half of your April $80 call options (MTLDP.X).

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

It's been another roller coaster week in global markets. After a strong rally last Friday, markets sold off sharply on Monday, only to recover strongly yesterday. Headlines lamenting the U.S. credit crisis notwithstanding, the fundamentals of the companies in your portfolio remain intact. Most of the holdings in the Global Stock Investor portfolio have held up well, as they are supported by the weakening U.S. dollar.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE