We single out prefs of Kubannefteproduct, which should offer R43.
Overall, we reiterate our view on Rostelecom prefs with a SELL recommendation due to limited dividend flow, which negatively effects our DDM fair price.
Calculation of pref dividends implies a payout ratio of only 3% for prefs vs.
We confirm our HOLD recommendation on NBAMR common shares, but downgrade prefs to SELL.
Based on our FY 2011 net income forecast of $1320m, we estimate dividends on prefs to total R4.
The management is promoting the idea of converting prefs into commons.
Based on our analysis of the historical dividend payouts of Russian stocks and their earnings prospects, we favor MTS, Rostelecom prefs, Mechel prefs, Surgutneftegas prefs, TNK BP Holding's commons and prefs, Bashneft's commons and prefs, Dorogobuzh prefs and Bank Saint- Petersburg convertible prefs as the best plays on the dividend theme.
Dorogobuzh prefs are the best dividend play in the fertilizer segment.
Besides their potential conversion, prefs offer good value, trading with 67% upside
Since 2005, Rostelecom's prefs to commons discount has varied from 20% to more than 90%.