Betting on Good News from Ukraine

Nicholas Vardy

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

Last week ended on a positive note for U.S. stock markets, with the S&P 500 closing above 1,900 for the first time ever and ending the week up 1.21%. The NASDAQ continued to recover, rising 2.33%. The MCSI Emerging Markets Index rose 0.47%.

Big gainers in your Bull Market Alert portfolio included The Bank of Ireland (IRE), jumping 4.49%; AbbVie Inc. (ABBV), adding 1.93%; and energy play EOG Resources, Inc. (EOG), gaining 1.43%. Both Grifols, S.A. (GRFS) and India’s Tata Motors Limited (TTM) hit new 52-week highs as well. Finally, Visa, Inc. (V) moved back above its 50-day moving average and is back to a BUY.

This week’s Bull Market Alert recommendation, Mobile Telesystems OJSC (MBT), is Russia’s largest mobile phone service provider.

Founded in 1993 and headquartered in Moscow, MBT currently serves approximately 102.4 million mobile subscribers. In addition to Russia, MBT also has been awarded GSM licenses in Ukraine, Armenia, Turkmenistan and Belarus — a region that boasts a total population of more than 200 million. MBT also was recently ranked ninth among the Top 10 leading telecommunications brands in the world.

Despite all of the achievements of MBT, this recommendation is more a bet that the Ukrainian crisis is defusing, and that the Russian market is set to continue what has already been a substantial bounce.

The news from the region has certainly improved. On Sunday, Ukrainians elected Western-oriented billionaire Petro Poroshenko as president. Importantly, President Vladimir Putin has indicated that Russia will work with him. Visa and MasterCard announced on Friday that they’ll keep operating in Russia, signaling an improving business environment. Finally, indications are that Russian troops have started to withdraw from the Ukrainian border.

Exclusive  My Three Pillars to Live By

Like the rest of the Russian stock market, MBT is cheap, trading at a price-to-earnings (P/E) ratio of just over 7. No wonder it has become the favorite of many large U.S. hedge funds seeking to profit from Russia’s current crisis.

So buy Mobile Telesystems OJSC (MBT) at market today, and place your stop at $16.00. If you want to play the options, I recommend the September $19.00 calls(MBT140920C00019000).

Portfolio Update          

The Bank of Ireland (IRE) gained 4.49% last week. Bank of Ireland regained lost ground last week as it continued to trade higher along its mighty 200-day moving average (MA). Moody’s raised its credit rating for IRE last Monday by two notches, from Baa3 to Baa1, marking the second time in six months that Moody’s has upped its rating for Bank of Ireland. IRE is a HOLD.

AbbVie Inc. (ABBV) added 1.93% as it continued its six-week long bull run. Abbvie is also just 50 cents from its 52-week high. ABBV filed a new-drug submission with Health Canada last week as it is seeking to bring its latest Hepatitis C therapy to Canadian markets. ABBV is a BUY.

Grifols, S.A. (GRFS) rose 0.93% over the past five trading days. GRFS hit a new 52-week high and all-time high early last week. Trading volume spiked to a 52-week high last week as well, a bullish recovery from GRFS’ latest dip. GRFS is a BUY.

EOG Resources, Inc. (EOG) gained 1.43% last week. CNBC personality Jim Cramer highlighted the outstanding growth potential of U.S. energy companies late last week — mentioning EOG as one of his favorites. Domestic energy companies such as EOG are currently experiencing growth rates of up to 40%, making them hot stocks to own. EOG is a BUY.

Exclusive  The Nasdaq and Cryptocurrencies Finally Part Ways

Tata Motors Limited (TTM) added 0.49% last week after hitting another new 52-week high for the second week in a row. Moody’s affirmed its positive rating for Tata Motors early last week and maintained its outlook of “stable.” TTM is a BUY.

Visa Inc. (V) rose 1.07%. Both Visa and MasterCard reached an agreement with Russian authorities recently to continue their card payment operations throughout Russia. Russian operations have been somewhat complicated recently due to Russia’s Ukrainian pursuits and the resulting sanctions. However, this agreement stabilizes Visa business dealings in this part of the world. V popped back above the 50-day MA last Friday to move to a BUY.

ProShares Ultra Real Estate ETF (URE) dipped 0.94% last week. This latest addition to your Bull Market Alert portfolio gives you a 2x leveraged bet on the positive trend in real estate. And, URE’s recent dip gives you the ideal buying point to prosper from the resurgence in the housing markets. URE is a BUY.

Nicholas Vardy

P.S. As a valued subscriber, you are invited to participate in my next FREE, exclusive conference call today, May 27, at 1:00 p.m. EST! You’ll listen live as I discuss my outlook on the markets, review my current portfolios and reveal The Stock Market Rally No One’s Talking About. (Note that this is an “interactive” event, so you’ll have the opportunity to ask questions and voice your opinions.) Click here now to register for this FREE, subscriber-only teleconference.

P.P.S. I have just issued an incredible guarantee: 15 opportunities to double your money over the next 12 months. In the past 2 1/2 years, I’ve delivered a whopping 132 double- and triple-digit percentage winners. There is only one catch. The opportunity to take part in these guaranteed gains closes just days from now on May 31. Learn more here.

share on:

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

share on:


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

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

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

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

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

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

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

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, 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.

  • Dividend Investor