Technical Analysis on VimpelCom and Mobile Telesystems: Telecom Companies Focus on Core Business

  Technical Analysis on VimpelCom and Mobile Telesystems: Telecom Companies
                            Focus on Core Business

PR Newswire

LONDON, February 13, 2013

LONDON, February 13, 2013 /PRNewswire/ --

International telecom stocks performed fairly well and are expected to keep up
the momentum. These stocks are more vulnerable to the shift in global economy
and have slightly different risk profile than the domestic telecom companies.
VimpelCom Ltd. (NYSE: VIP), one of the most prominent telecom companies in
Russia, is transforming itself into a lean organization. It plans to dispose
its non-core assets and focus on essential business units. While the stock
already provides good return, it is likely to perform even better in the
future. Mobile Telesystems OJSC (NYSE: MBT) is also taking steps to boost its
performance and margins. StockCall has posted free technical research on
VimpelCom and Mobile Telesystems which can be downloaded upon sign up at

VimpelCom Increases Stake in Euroset

VimpelCom posted 12 percent capital appreciation in the past 52 weeks. It
augmented its shareholders' value further by paying high dividend with yield
of over 6 percent. VimpelCom recently announced 80 cents per share in dividend
to be paid to its shareholders. The future looks promising for VimpelCom as it
plans to grow its EBITDA and revenue by high single digit percentage in the
next three years. Its efforts to control its debt are expected to positively
impact on its stock price. VimpelCom aims to grow its cash-flow by $2.9
billion over the course of the next three years. It also plans to reward its
investors by paying 80 cents per share in dividend in 2014. The free report on
VimpelCom Ltd. can be downloaded by signing up now at 

VimpelCom is also planning to streamline its business and plans to focus on
its mobile operations. It is also looking to reduce its presence in fixed line
business. The company is planning to restructure its business as its aims to
sell some of its business in Africa and Asia.

The company derives a major portion of its revenue from Russia, where it is
expanding its presence. It recently increased its stake in the Russian
business of Euroset to 50 percent. The remaining 50 percent stakes are held by
Lefbord Investments Limited. The increase in stake will help VimpelCom in
exercising better control over the operations of the company. However, at the
same time it is also contemplating selling its broadband unit in Russia.

Mobile Telesystems Boosts Margins

Mobile Telesystems reported revenue of $3.13 billion for its third quarter,
lower than its previous year quarter. However, its EPS for the quarter grew.
The stock performed well over the course of the past 52 weeks as it gained
over 19 percent. It also provided good return to its investors in the form of
dividend. The stock currently sports dividend yield of 3.77 percent, making it
an good investment option for an income portfolio. Sign up and read the
complimentary report on Mobile Telesystems OJSC at 

Mobile Telesystems is also revamping its business. The company has a new
management team in place and plans to capture the high-end of the market by
focusing on higher value clients. The move will help the company to boost its
margins. Mobile Telesystems is also working to introduce innovative tariff
plans to attract more customers. Another step taken by Mobile Telesystems
includes its focus on voice services. These steps will help Mobile Telesystems
in increasing its profitability and are expected to push its stock price up.

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