Market analysts say the shares of electricity transmissioncompany Transelectrica (TEL) have a potential to increase due tothe low multiples at which the company's shares are traded,compared with those of other companies operating in the samesector, as well as to the big investments that the company hascommitted to, with a positive impact on the company's operatingprofit.
Investors seem to agree, considering that shares have increased 50%since the beginning of the year, above the 28% rise of the BETindex (of the 10 most liquid shares on the stock exchange).
"Even with this low profitability recorded in 2009, Transelectricais traded at significant discounts compared with other companies inneighbouring countries (...)," says Mihai Caruntu, head of thecapital market research department within BCR.
However, the results of the last few years reported byTranselectrica disappointed investors, with the company's profitfalling from year to year, from 277.2 million RON (78 millioneuros) in 2006 to 6.1 million RON (1.4 million euros) last year,which also led to a significant cut in dividends disbursed toshareholders.
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