The shares of “Magnet” grow in price the fourth consecutive session

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The shares of “Magnet” grow in price a fourth consecutive session. Today the paper are supported by corporate news, but overall, buyers are quite close to break the boundaries of “sideways” 3387-3756 RUB and be higher. The current quote is around 3739 RUB.
Shareholders “the Magnet” has agreed dividend payments for 9 months of current year in the amount of RUB 137,38 for the securities. In total, the company will direct on payment of dividends 14 billion. Thus there is a solution to the management of the company to pay dividends twice a year, which is quite logical in light of the recent decline of interest in the company and its stock after the change of the owner of the business. Cut-off for dividend payout will take place on 21 December 2018.
In the third quarter “Magnet” with its financial results looked quite decent. Now it’s very important to see the statements for the fourth quarter and the year 2018 as a whole. If there was preservation of positive trends in July-September, it will be possible to say that the dark times have passed. For particularly conservative investors can wait for and reporting for the first quarter of 2019 – where the picture will be more objective, it will be possible to assess the prospects and create a more clear purpose for the paper.
“The magnet” continues to open new stores. Someone thinks the continuation in force of this strategy is self-confident, someone sees this as a strategic goal (the company invests, but on a long horizon, and with reasonable management it will become the fulcrum). Technically, the multiples “Magnet” looks more attractive than competitors (in particular, X5), but right now, when the papers come major funds, the situation with the prices remains very fragile. If the stock is already in an investment portfolio, they are worth keeping. In the moment it makes sense to hold off and wait for the statements for the fourth quarter of 2018. The long-term goal is in the range 5000-5500 RUB the Dividend story also looks quite interesting for retail.
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Anna Bodrova,
Senior analyst,
Alpari