TKC - Turkcell

[ContrarianValue44]

Hello everyone. I have recently been reading Richer, Wiser, Happier, which has a section about Laura Geritz, who is the CEO and chief investment officer of Rondure Global Advisors. She is an international investor who travels to different countries to gain an edge over the competition (she's been to over 75 countries) and has delivered significantly above average performance. She's a contrarian, investing in countries that the world views as "risky" and "unstable", so valuations there are beaten down. She is currently most bullish on Turkey. The only two Turkish related stocks I found on US exchanges are Ciner Resources and Turkcell. Ciner Resources I'm already invested in and am bullish about, Turkcell also looks interesting. Business has 14-20 percent ROE, accelerating revenues, and trades at an EV/Operating Income of about 7x. Turkcell also has exposure to countries like Ukraine, Belarus, Azerbaijan, Cyprus, Germany, and the Netherlands, balancing country risk (although most of the country risk is still in Turkey ofc). Any thoughts and insights about Turkcell would be greatly appreciated!

[Spekulatius]

KHOLY ( holding co) and AKBTY (bank) are two more Turkish stocks that are trading ADR's.

 

ROE is a bit of a questionable metric and needs to be seen in context with the high inflation and the currency depreciation (both are related to each other).

[Baklava]

Turkcell's exposure in Germany is negligible I would say. A couple of years ago they targeted consumers with turkish roots living in Germany. But it wasn't a success. They ceased operations as far as I know.

[ContrarianValue44]

Great, thanks for your input @Spekulatiusand @Baklava!

[Baklava]

@ContrarianValue44 I am sorry but I mixed it up. I actually meant Türk Telekom, which entered the German market via a joint venture with O2 (Telefonica Germany) several years ago but wasn't a success at all. Apparently, Türkcell is still operating in Germany after rebranding itself. https://www.telekom.com/de/konzern/details/aus-turkcell-europe-wird-lifecell-511830

But I would still assume their revenues in the German market are negligible as the big three MNOs Deutsche Telekom, O2 and Vodafone share the market among themselves. 

[ContrarianValue44]

3 minutes ago, Baklava said:

@ContrarianValue44 I am sorry but I mixed it up. I actually meant Türk Telekom, which entered the German market via a joint venture with O2 (Telefonica Germany) several years ago but wasn't a success at all. Apparently, Türkcell is still operating in Germany after rebranding itself. https://www.telekom.com/de/konzern/details/aus-turkcell-europe-wird-lifecell-511830

But I would still assume their revenues in the German market are negligible as the big three MNOs Deutsche Telekom, O2 and Vodafone share the market among themselves. 

Thanks for the info! Any insights on the political risk of Turkcell or their operations outside of Germany?

[Baklava]

No, I don't have any insights on both topics as I am not following Turkish companies/market closely. 

But you should keep an eye on Turkey's high inflation rate. https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Inflation+Data/Consumer+Prices

[kab60]

I think you wanna check this guy out: https://twitter.com/Haydaracunn - seems like he's crushing it.

 

Edited April 27, 2021 by kab60

[ContrarianValue44]

3 hours ago, Baklava said:

No, I don't have any insights on both topics as I am not following Turkish companies/market closely. 

But you should keep an eye on Turkey's high inflation rate. https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Inflation+Data/Consumer+Prices

 

3 hours ago, kab60 said:

I think you wanna check this guy out: https://twitter.com/Haydaracunn - seems like he's crushing it.

 

Thanks!!