In the conditions of an unstable economy in 2021, it is very difficult to decide where to invest your own savings so as not to lose them and additionally make a profit. It is necessary to invest money, if only because it is useless to store capital at home - constant inflation leads to the depreciation of money, so any amount can simply disappear.
However, a well-chosen investment option will not only preserve your savings, but will also help you become richer with their help. Let's take a closer look at the most reliable and riskier ways to invest money, which will help you make money even in a very difficult 2018.
An option to invest money with a minimum of risks
For those who are just beginning to navigate the world of big finance, the least risky, although low-profit options
. If your goal is not to earn as much money as possible by investing it in a risky project, but simply want to save your savings and protect them from inflation, bank deposits and government bonds will help you with this. Each option has its own advantages. They also remain relevant in 2021.
Investment idea #1 - bank deposits
The most common, although least profitable method is to place funds in a bank deposit
. Such an investment relieves the investor of the need to store capital at home, and also allows him to receive a small profit in the form of interest from the bank. The most reliable option is to invest money in giants of the banking sector, such as Sberbank, VTB, Rosselkhozbank and some other organizations. They are partially controlled by the state, so the risk of financial collapse of such banks is minimal.
Pros and cons of bank deposits:
- Reliability.
Cash deposits are necessarily insured, insurance compensation is paid in an amount of up to 1.4 million rubles. If you need to invest larger capital, you can invest it in several banks, and the money will be under state protection. - The income is known in advance, which is very important for the investor.
When concluding an agreement with a bank, the interest rate is already known, and it is easy to calculate how much profit the investor will receive. - Stable profit.
A term deposit involves placing money in an account for a specific period of time - usually from several months to several years. At certain time intervals, interest is accrued on the deposited amount.
The only disadvantage of a bank deposit is its low yield. The rates of even the largest banks do not exceed 9%, which at best covers inflation, but does not increase capital.
Essentially, the bank manages your money and takes the profits for itself. While you can manage your finances yourself.
#2: Government bonds - as another idea to invest money without risk
Bonds are government securities that are issued to attract financial resources from the public. Such paper gives the right to a refund of the purchase price and to receive additional income in the form of a percentage of the price.
The following types of bonds are distinguished according to the method of issuance and the possibility of generating income:
:
- Short-term bonds and treasuries. They are issued by the federal authorities during a crisis period for short periods and provide the opportunity to receive a fixed income at a set interest rate.
- Medium-term bonds of government loan and savings loan.
- Long-term government bonds and domestic foreign currency loan bonds.
All listed securities represent a debt obligation of the state to bond buyers.
They are in demand during a crisis, when the state needs to attract capital to cover the budget deficit. When the situation improves, the funds are returned to the bondholders with payment of the required interest. Bonds can be distributed among buyers using a bidding system at auctions, with the Russian Ministry of Finance acting as the issuer.
The advantage of such securities is a guaranteed return on investment and profit.
, this is especially important in unstable times of crisis. The downside is low returns: this is one of the least profitable investment options in terms of profit.
Another important point: when purchasing bonds, funds are actually transferred under external management
If you do not understand economic mechanisms and do not want to constantly monitor the situation on the market, investing in a deposit or government bonds is the most reliable solution.
Magnet
Magnit shares continue to trade within the weekly downward channel within the long-term downward channel; as part of the correction, they rolled back and are consolidating near the support in the form of its lower border.
The nearest support is now near the RUB 6,500 mark. (lower limit of the long-term downward channel, Fibonacci level 61.8% correction to the growth of 2012-2015) and then 4,500 rubles. (horizontal).
The nearest resistance is now located near the 7,800 rub. (Fibonacci level 50% correction to growth in 2012-2015), then 9,000 rubles. (200-period EMA, Fibonacci level 38.2% correction to the growth of 2012-2015) and then 10,400 rubles. (upper limit of the long-term downward channel, Fibonacci level 23.6% correction to the growth of 2012-2015.
The recommendation is to form speculative long positions near the support of RUB 6,500. with the installation of a close protective stop - order.
Magnit - revenue and sales area:
Fundamental view:
Our conservative estimate of the fair value of Magnit is RUB 7,645. per share, which implies an upside potential of 16.7% from the current market price.
Comparative multiples:
EV/S P/E EV/area
| Magnet | 0.7 | 15.9 | 134 |
| Retailers of the Russian Federation | 0.6 | 18.5 | 174 |
| Moscow Exchange Index | 1.2 | 7.1 | — |
Medium risk level - options on how to invest money with moderate risks and earn money
For those who own large capital and want to make large profits from it, there are several riskier investment options
. At best, deposits and bonds cover inflation; at worst, some of the money simply burns out. Because of this, investors are forced to look for more profitable investment options, despite the increasing risk.
Let's take a closer look at the most promising options for investing large and medium capital
:
Investment idea #3 - investing in real estate
One of the relatively reliable investment options is investing in the purchase of real estate. Despite fluctuations in the housing market, it will always be in price; this is the most reliable way to store capital for a long time.
There are investment strategies involving borrowed funds: the investor invests in the purchase of unfinished housing on the terms of shared construction with a mortgage, and after a few years sells the finished new building at a high cost. The level of profitability in this case can reach 20-30%, however, such strategies can be considered risky.
Against the backdrop of the financial crisis, housing may remain unfinished, and price fluctuations may lead to a sharp drop in property values.
However, this investment option has several significant advantages.
:
- Opportunity to earn income from renting out housing.
This will allow you to offset the costs of sale and receive a stable income from the purchased property. This is actively used by residents of Moscow, St. Petersburg and other large cities, where rental demand is high and prices remain very high. - The possibility of resale with a profit due to the difference in cost
, in this case it is necessary to take into account the prospects for the development of the housing market and price fluctuations. Housing in prestigious areas is steadily growing in price; such capital is guaranteed not to depreciate. - Guaranteed capital preservation.
Any business can go bankrupt, a bank can lose its license, but housing will remain a valuable property that can always be resold. In addition, even in a crisis, it can be rented out and make a profit.
This investment option has its own risks
. It is necessary to carefully check the legal purity of the transaction with any real estate; to complete the purchase, you must find a trusted real estate organization with a good reputation. Caution and careful verification of documents allow you to avoid fraud and other unpleasant situations.
#4 - you can invest money in precious metals
Another reliable long-term investment option is purchasing precious metals
: gold, silver, platinum, palladium, etc. Despite inflation, their prices change little; precious metals do not lose much in value even in the most serious economic crisis. This is a reliable solution if you want to invest money for a long time: prices for gold and other precious metals are growing slowly but surely.
several options for purchasing precious metals
:
- Buying bullion.
There is no need to take them with you: the bullion continues to be stored in a bank vault under reliable security, and the depositor receives only a purchase document. It is important to remember that upon resale in the next three years you will have to pay 13% tax to the state, which reduces the return on investment. If more than 3 years have passed since the date of purchase, the tax is no longer charged. - Buying coins made of precious metals at Sberbank.
Their cost is too high compared to the price of the precious metal itself, so this option has its drawbacks. - Metal impersonal account - this option is offered by Sberbank and other large banks.
In this case, the investor does not receive the metal in his hands, he purchases it as currency and makes a profit due to the difference in the exchange rate. It should be taken into account that there is a difference in the rate of sale and purchase of precious metals, so this option is suitable for large investments. - Purchase of jewelry made of precious metals and art objects.
The main difficulty may arise during resale: it is important to find a buyer and get the right price. To do this, you can use resale through auctions of art and antiques.
Purchasing precious metals is considered a low-income but reliable option; this method of investment will not cease to be in demand.
#5 - structured bank deposits as another idea to invest money to earn money
Structured deposits are an opportunity to receive increased income from investing in a bank
, compared to regular deposits. Such a deposit represents the simultaneous use of two banking products: the funds are divided into two parts, and one of them is placed in the bank in the form of a time deposit, and the second is used to invest in some asset. This could be a share in an investment fund, a futures contract, company shares, and much more.
The first part of the investment provides guaranteed profitability: the profit on the deposit must be such that it covers possible losses on the investment in the second part. As a result, the risk for the investor is reduced to a minimum: even if an investment in assets does not bring in money, the invested funds will be returned.
With the right selection of assets for investment, you can get considerable profits.
Structured deposits are offered by large banks such as Sberbank, VTB, Gazprombank and others. For each investor, the most reliable option for investing funds is selected, taking into account the current market situation and profitability prospects.
Structured deposits combine the advantages of investments with known and unknown income
:
- On the one hand, the investor knows that he will receive a guaranteed income from placing funds on deposit
and will cover possible losses. - On the other hand, an investor can make a large profit from the resale of an asset
, although its size is not precisely known and depends on the market situation.
Profitability is partially reduced because banks and investment companies charge fees for their services. All factors must first be calculated so that the income is above the minimum value.
Super idea for investing money #6 - ready-made business
One of the rather risky investment options is the purchase of a ready-made business with already running mechanisms and a network of clients.
Creating a business from scratch is problematic: you will have to find your niche, fight competition, win the trust of consumers and negotiate with suppliers. A ready-made company has already gone through all this; they can only invest in further development.
All offers of ready-made business can be found in our section
This solution has the following advantages:
- Ready business plan and state registration.
Finding your own idea takes a lot of time; opening a company from scratch means going through bureaucratic formalities. With a ready-made company there will be no such difficulties. - Availability of a ready-made office, staff, agreements with suppliers and partners.
If the business is already running like a wound clock, the new owner will be spared a whole lot of hassle. - Availability of a ready-made client base.
The company already has a certain reputation in the market, consumers trust its products. - Already have a positive credit history.
A sound financial reputation paves the way for attracting new loans and investments. - There are state licenses for certain types of work.
Obtaining a license from scratch is a costly and lengthy procedure.
However, this solution has many disadvantages. Few people sell an ideal business of their own free will: most often, owners are in a hurry to part with unprofitable enterprises that cannot cope with their obligations. Business reputation suffers when managers change,
employees may begin to quit en masse when management policies change. Often, after completing the transaction, the buyer discovers that the company has already been blacklisted by suppliers and other contractors, so it is impossible to continue doing business.
To avoid such a purchase, you must carefully check the financial documentation. You need to try to find out the true reasons for selling the business and determine the attitude of the staff towards the organization.
Before purchasing a company, a full audit is carried out: financial statements, tax returns are studied, and an inventory of property is carried out.
#7 - participation in existing investment projects
One of the popular investment options is investing in existing projects with the opportunity to earn good money. The investor chooses a promising enterprise that needs funds for development, and after a certain period of time returns the invested capital with interest.
All proposals for investment projects can be found in the catalog of investment projects.
In this case, the funds are actually transferred under someone else's control
, so you need to be completely confident in the profitability of the enterprise and the reliability of its owner. Before investing money, you need to carefully study the business plan, evaluate the company’s accounting documentation, and become familiar with its credit history and financial reputation. If there is even the slightest doubt about the partner’s honesty and trustworthiness, it is better to refuse such a deal.
Investing in someone else's business is always a risky endeavor. The economic situation is constantly changing, and it is difficult to calculate profits several years in advance.
The most promising project may turn out to be low-income at best, and unprofitable at worst.
However, a successful investment in an investment project is an opportunity to get large profits in just a few years
Investment option #8 - long-term investment in stocks
Investing in stocks provides the opportunity for passive income for many years through institutional dividends. The more stable and successful a company is, the higher the value of its shares, and the more profitable the resale. However, it is difficult to predict in advance the profitability of a business in a few years.
: A fall in stock price will result in no income and direct losses. To prevent this from happening, you must carefully choose the direction for investing capital.
There are two types of shares
for long-term investment:
- Regular shares.
Shareholders have the right to manage the company's activities, but they do not receive a stable income. Dividends are calculated depending on profits, and if the year was completed with a zero balance, there may simply be no dividends. - Preference shares.
They do not give the right to manage the organization’s activities, but they allow you to receive a fixed income every year, regardless of the company’s performance.
Organizations issue shares to attract new funds: each issue is an opportunity to expand activities and make a profit
. However, expanding the circle of shareholders is an additional risk, so you need to carefully study the financial reputation of the company.
To prevent losses, you need to constantly monitor the stock price
It is profitable to purchase them at the depth of the fall: in this case, the risk of losses is minimal, even a slight increase in the rate will lead to an increase in profits
. Investing in shares of large companies is beneficial for those who are interested in long-term profits: even if prices are falling now, in a few years they can rise significantly.
An example is Alisher Usmanov’s purchase of Alibaba shares in 2011. During this period, the value of the company was estimated at 37 billion dollars, but after 4 years it increased to 277 billion. The value of the shares increased many times over. As a result, the net profit of shareholders amounted to 500%
.
Where to invest - option #9 - direct the money to open a successful franchise
Franchising is a type of purchasing an existing business. A franchise is the right to open a business under a long-established brand known to customers.
. The buyer of a franchise receives detailed step-by-step instructions: how to open a business, how to decorate the premises, how to train staff, what standards to work by in order for the venture to be profitable.
All current franchise offers for 2021 can be found in our catalog
The more profitable the franchise, the more expensive it is: buying a name can cost hundreds of thousands of rubles
. In addition to the costs of purchasing and implementing instructions, you will have to pay an additional fee for using someone else’s brand, which also affects the return on investment.
However, such a purchase has an advantage - you don’t need to spend money on promotion from scratch, a popular brand attracts buyers
, which means the business is guaranteed to be profitable. This is a good solution for a big city, where you can easily find premises to rent in an area with high traffic and a constant influx of customers. Following the instructions will allow you to get started right away and recoup your investment in a short time.
If there is no such place to rent, and the brand is little known in the city, then it is more profitable to start a business from scratch. Otherwise, the large costs of purchasing and paying a monthly franchise may not be worth it, and the money will be wasted.
ALROSA
ALROSA shares on the weekly interval continue to trade within the long-term ascending channel (highlighted in blue), during the correction they are very close to significant support near the 74 ruble mark.
The nearest resistance is located near the 79 rub. (horizontal), then 86 rub. (the upper limit of the medium-term downward channel, highlighted in brown) and then 94 rubles. (horizontal).
The nearest significant support is located near the 74 rub. (lower limit of the long-term ascending channel, Fibonacci level 61.8% correction to growth in 2021) and then 68 rubles. (lower boundary of the medium-term downward channel, highlighted in brown).
The recommendation is to form speculative long positions near the support of 74.1 rubles. with the installation of a close protective stop - order
Fundamental view:
We compared Alrosa with the Moscow Exchange industry index (Alrosa's weight in which is 14.4%) based on financial comparative multiples. Our estimate of the company's fair value is RUB 669 billion. or 91 rub. per share, which implies an upside potential of 22% from the current market price. We believe that Alrosa shares can be considered as candidates for inclusion in a long-term investment portfolio. In addition, we estimate the expected dividend yield on Alrosa shares at 7.6%, which exceeds the average dividend yield on the market.
Comparative multiples:
EV/S P/E Div. ex.
| Alrosa | 2.3 | 6.7 | 7.6% |
| Moscow Exchange Metals and Mining Index | 2.1 | 8.7 | 7.2% |
| Moscow Exchange Index | 1.1 | 7.1 | 4.8% |
Investments for the brave - where to invest money to earn money while taking high risks
If you already have experience in running a business or have a large enough amount to not be afraid of the costs, it is worth exploring high-risk financial investment options. The enterprise may turn out to be profitable, and then the investment will pay off in the coming year with little expense. However, more often the opposite happens: the business turns out to be unprofitable, and the investment does not justify itself. Every investor has the right to take risks and should explore all available options.
Investment option #10 - start your own business from scratch
Starting your own business is one of the riskiest investment options
, especially if you have no experience. A novice entrepreneur does not know many of the pitfalls of the business world, has no experience in attracting investments and drawing up a business plan. If you have a promising business idea, and you already know how and with whom you will implement it, it’s worth taking a risk.
First you need to develop a detailed business plan
. To do this, it is worth assessing the current market situation in the chosen industry, determining the level of competition and upcoming costs for renting premises, purchasing equipment, raw materials, hiring personnel and more.
It is advisable to find a niche in which there are few competitors: at the initial stage, coping with experienced business sharks is problematic. It is also better to do without using bank loans: banks are reluctant to give loans for new projects, and the interest on them will be very high.
Despite all the risks, owning your own business remains one of the most popular investment options.
It attracts young entrepreneurs for several reasons:
- The opportunity to do what you love.
A hobby can turn into a source of permanent income, and then life will become truly happy. - Attracting partners and investors.
The implementation of an interesting idea requires a team of like-minded people: this is how the most ambitious companies were born. - Possibility of self-realization.
Owning your own business is a way to test your strength and conquer new heights in the financial world. There is no need to be afraid to start: after the first difficult period, a carefully thought-out enterprise will become a source of profit.
Investment option for earning money #11 - new franchises
New franchising products include offers that appeared less than a year ago
and are still unknown to the general public. Their advantage is ready-made instructions that will help a novice entrepreneur quickly create his own business and start earning money. Such a plan and a registered trademark eliminate the preparation costs; setting up a business will take little time. The estimated payback period for investments is 2-3 years, after which the company will begin to generate net profit.
However, a new franchise is an increased risk. It is unknown how popular the company will be, whether it will be able to outperform competitors and win the trust of consumers.
If long-running franchises have already proven their effectiveness, then an untested brand is a double risk
For such an investment to be profitable, a careful calculation of the investment and payback period is necessary.
, as well as constant monitoring of the business over several years. Franchising is a risky investment option and requires careful planning.
#12 – investing in startups will help you make good money
A startup (from English Start-up) is a business project that is at the very beginning of its development. Often this is only a potentially profitable idea
, the implementation of which requires considerable financial investments. Is it worth investing in someone else's venture?
On the one hand, this is an opportunity to help a novice entrepreneur, and if the idea turns out to be profitable, the investor will return all investments and receive a solid income. You can find dozens of examples of successful commercial ventures that would have been impossible without outside financial assistance.
To attract an investor, a detailed business plan must be developed calculating the payback time and upcoming costs
On the other hand, investing in a startup is one of the most unpredictable investment options
. If a business has not even begun to exist, it is impossible to estimate its profitability, predict the number of customers and detailed development costs. An investment can result in large losses without the possibility of getting your money back, or, on the contrary, it can become a source of profit.
For a beginning businessman, attracting an investor is also a risk. In this case, the investor can influence the company's policies and interfere in financial management, and this often interferes with business development. Both parties must carefully weigh the risks to make the right decision.
#13: playing on the stock exchange and Forex is too controversial, too risky
One of the most options where you can invest money is playing on stock exchanges and the famous Forex. It is a transnational market for trading currencies and other assets; profit on it can be obtained by buying and selling assets at different rates. The excitement around it has not subsided for many years, and we can’t expect this trend to die out in 2021. Forex and similar stock exchanges have several advantages:
- Accessibility for everyone.
Anyone can install special programs and start trading on the stock exchange and earn money. The popularity of such platforms continues to grow, despite the crisis. - Relatively low cost of entering the market.
A small capital is enough to start trading and get paid for successful transactions. - Availability of training.
In the public domain, you can easily find articles, reviews, analytical materials and textbooks for mastering foreign exchange trading strategies. Investors also have the opportunity to entrust their capital to experienced brokers and give them the opportunity to independently conclude transactions on the stock market.
However, this investment option has many more disadvantages and risks.
It is impossible to accurately predict exchange rate fluctuations: the most experienced traders say that they have repeatedly completely lost their deposit, that is, they have lost all the money they invested and earned. Training requires knowledge about the financial world and takes a lot of time: it takes more than one month to learn all the intricacies and secrets of the stock market. Because of this, many participants treat it like a lottery or gambling rather than a serious investment.
Playing on stock exchanges is a profitable but very risky activity.
, so it’s best not to make it your only investment option. It is much safer to invest at least part of the capital in reliable projects, and use only a small part for stock trading.
#14 - investments in microfinance organizations
Like banks, microfinance organizations not only issue loans, but also accept investments, and the interest rate on deposits there is much higher than in banks
.
An investor deposits funds into an MFO, the organization issues this money to borrowers in the form of loans at high interest rates, after which the investor receives the planned income. The scheme is similar to investing money in a regular bank deposit, but has a number of unpleasant differences
:
- Lack of insurance.
Unlike bank deposits, such investments are not insured, which means there is a certain risk of non-return of money. If an MFO offers insurance, the depositor himself will have to pay for it. - The need to pay tax.
There is no need to pay personal income tax on bank deposits, and this rule does not apply to investments in microfinance organizations. The tax amount will be 13% of all profits received. - Large investment amounts.
You need to invest at least one and a half million rubles in MFOs, and this is a large investment for a private investor. For an organization and an entrepreneur, this amount starts from 100,000, the tax rate in this case will be not 13, but 6%. - The advantage of investing in MFOs is the high return on investment. Interest rates can reach 60% per year: for comparison, this is 10 times the rate that Sberbank offers to the population. As a result, investments in MFOs continue to be in demand, despite the high risks for depositors.
Invest money and make money on extremely profitable investment companies - #15
A risky investment option is investing in so-called ultra-profitable sites on the Internet. One of the varieties is HYIP - an investment project that most closely resembles a financial pyramid. Funds for such projects come only from new investors
: Each new investor brings money. which will go to existing investors. As soon as the funds stop flowing, the financial pyramid collapses, and only its organizers and the very first participants remain in profit.
The profitability of such projects is questionable: some manage to earn large sums, but the vast majority of investors are left with nothing.
A striking sign of such sites on the Internet is the abundance of flashy advertising with the promise of super-income in a few days
The activities of financial pyramids are recognized as fraudulent, but this does not stop those who want to get as much as possible without effort. In 99% of cases, such investments end in losses
, and the very next day a new project under another big name may appear on the Internet. The most dangerous investments are in quick HYIPs - projects last only a few days, and they promise the highest interest rates.
Aeroflot
Aeroflot shares on the weekly interval continue to move within the medium-term downward channel, during the correction they approached and are consolidating near the support in the form of its lower border.
The nearest support is now near the 143 rub. (100-period EMA, lower boundary of the descending channel, Fibonacci level 38.2% correction to growth in 2021), then 125 rubles. (Fibonacci level 50% correction to growth 2021)
The nearest resistance is now located near the 165 rub. (horizontal), then 170 rub. (upper limit of the descending channel) and then 173 rubles. (Fibonacci level 23.6% correction to growth) and then 215 rubles. (local maxima).
The recommendation is to form speculative long positions near the support of 143 rubles. with the installation of a close protective stop - order
Fundamental view:
Aeroflot reduced its net profit under IFRS for the nine months of this year by 38% year-on-year. The fourth quarter may turn out to be traditionally weak for the company, so our conservative forecast for Aeroflot's annual profit for the current year is RUB 25.5 billion. (lower than nine months profit). However, we expect an improvement in the company's financial performance over the next year, including due to the growth of passenger traffic, one of the factors of which could be the World Cup being held in the Russian Federation. The expected dividend yield on Aeroflot shares, even based on a conservative net profit forecast, is almost 8%.
Comparative multiples:
EV/S P/E Div. ex.
| Aeroflot | 0.4 | 6.3 | 7.9% |
| World air carriers | 0.8 | 9.3 | 4.4% |
| Moscow Exchange Index | 1.2 | 7.1 | 4.8% |
Where you should not invest money - where you can not earn, but lose
When choosing an investment option, you must avoid outright fraudulent offers and risky methods that will lead not to profit, but to guaranteed losses. The Internet is full of tempting offers that promise guaranteed profits, but the result will only be loss of money and disappointment. There are several areas that it is best not to consider at all
:
- Online casino.
Many programs initially work for the downside: the client wins less and less, and the losses become larger. As a result, in a very short time all investments turn into zero. Such casinos quickly close, but then open with a new name. - Sports betting.
It is almost impossible to guess the result of the competition; such bets are comparable to a regular lottery. Most often, excitement gives way to disappointment: in 90% of cases, the bet ends in loss and the loss of a large amount. - Internet poker.
Most of all, such games resemble online casinos: it is impossible to win consistently, rare successes are replaced by a losing streak with a complete loss of the deposited amount. - "Free" projects.
On the Internet you can find many messages about hacked WebMoney wallets, casino deception schemes, special deposits with crazy interest rates. All such offers can be safely attributed to fraud: the money invested will not be returned, and it is almost always impossible to find scammers. - Credit exchanges on the Internet.
Such offers are also becoming more common: people are offered to lend their own money at high interest rates. However, there is no guarantee that the borrower will repay the loan or that it will even be possible to find him.
These are just some of the methods of deception that force investors to part with their invested money. The main sign of fraud is the promise of a miracle
: incredibly high rates, instant profits, guaranteed results without effort. The love of freebies results in big losses and complete disappointment. In the worst case, scammers force you to bring several friends into the next pyramid, who will also part with their money.
IDGC of Center and Volga Region
Shares of MRSK CP showed impressive growth on the weekly interval and continue to draw a “falling flag” figure, removing overbought conditions in the form of a flat correction. Currently, the shares have approached and are consolidating near technical support near the 0.30 ruble mark.
The nearest resistance is now located near the level of 0.32 rubles. (horizontal) and then 0.35 rub. (local maxima).
The nearest support is located near the level of 0.30 rubles. (diagonal, highlighted in blue), then RUB 0.282. (Fibonacci level 23.6% correction to growth 2021 - 2021) and further, in case of strengthening of the correction, 0.24 rubles. and 0.205 rub. . (Fibonacci levels 38.2% and 50% correction to growth 2021 – 2021)
The recommendation is to form speculative long positions near the support of 0.3 rubles. with the installation of a close protective stop - order
Fundamental view:
We consider the shares of IDGC of Center and Volga Region and IDGC of Volga the most attractive in the distribution segment based on the values of comparative ratios and expected dividend yield. The companies have a low debt load, as well as a fixed rule for the distribution of dividends based on government order No. 1094-r dated May 29, 2021, which also applies to subsidiaries. Improved financial performance has led to a significant increase in stock prices since our last review of the sector. However, in our opinion, current quotes do not fully reflect possible significant dividend payments. Our dividend forecast for IDGC CP assumes a minimum payment of 3.8 kopecks. per share. For IDGC of Volga, the expected minimum dividends are 1.1 kopecks. per share.
How to choose the right investment training
To understand the intricacies of investing, it is necessary to study at least the basics of economics and the existing range of investment proposals. It is much more profitable not to delegate financial management to a third-party specialist, but to study the financial market on your own in order to take advantage of all its opportunities.
For training you can choose the following options
:
- Profile business courses on investing.
Investing in your own development is always justified: you will learn how to invest money profitably and avoid fraudulent offers, and get acquainted with examples of successful investments. - Online consultations.
It is not necessary to enroll in in-person courses. Many experts advise future investors via Skype, and such lessons will be no less effective, with the advantage of saving time and money. - Training videos and articles on the Internet.
You can find detailed materials on the Internet about the pros and cons of each type of investment, but you need to check the reliability of the sources.
Our company regularly conducts free seminars and webinars. You can view the list of courses here
Financial literacy education is one of the most valuable investments you can make.
The more you know about the world around you and economic mechanisms, the lower the risk of losses and the higher the chance of a successful investment project. Use maximum opportunities to achieve a guaranteed positive result.
We hope our analytical summary helped you understand where to invest money in 2021 to make money! Contact us if you have any questions or just want to share your opinion. Good luck!
Mechel priv.
Preferred shares of Mechel on a weekly interval continue to trade within the corridor of 92.5 – 119 rubles, approached and reflected downwards from the horizontal resistance level near the mark of 119 rubles.
The nearest support is now located near the level of 105 rubles. (horizontal, middle of the trading range), then 92.5 rubles. (horizontal, local minima).
The nearest resistance is now near the 119 rub. (upper border of the trading corridor, local highs).
The recommendation is to form speculative long positions near the support of 105.5 rubles, or in the event of a confident breakdown and consolidation above the level of 119 rubles. with the installation of a close protective stop - order
Fundamental view:
Mechel's financial performance continues to improve: EBITDA for 9 months grew by 42% y/y to 59.1 billion rubles, net profit by 101% y/y to 11.1 billion rubles. And although the company is practically not reducing its debt (463.8 billion rubles), we believe that it is able to allocate 20% of net profit to owners of preferred shares (in accordance with the Charter) as dividends. Given our conservative approach in assessing Mechel's forecast for the 4th quarter, we believe that the company will not make a profit, which gives an expected payment of 17 rubles (or 15% dividend yield based on current quotes) per preferred share at the end of 2021. We note that the price environment of the coking coal market remains the main positive driver for the continued improvement of the company's financial performance.
IDGC of Volga
Shares of IDGC of Volga showed impressive growth over the weekly period; they continue to draw a “triangle” figure, the direction of exit from which will determine the medium-term dynamics of the stock. Currently, the shares have approached and are consolidating near the technical support near the RUB 0.105 mark.
The nearest resistance is now located near the level of 0.112 rubles. (diagonal) and then 0.125 rub. (local maxima).
The nearest support is located near the level of 0.105 rubles. (diagonal, highlighted in blue), then 0.10 rub. (Fibonacci level 23.6% correction to growth in 2021 - 2021) and further, in case of strengthening of the correction, 0.085 rubles. and 0.072 rub. . (Fibonacci levels 38.2% and 50% correction to growth 2021 – 2021)
The recommendation is to form speculative long positions near the support of 0.105 rubles, or in the event of a confident breakdown and consolidation above the level of 0.112 rubles. with the installation of a close protective stop - order
Fundamental view:
We consider the shares of IDGC of Center and Volga Region and IDGC of Volga the most attractive in the distribution segment based on the values of comparative ratios and expected dividend yield. The companies have a low debt load, as well as a fixed rule for the distribution of dividends based on government order No. 1094-r dated May 29, 2021, which also applies to subsidiaries. Improved financial performance has led to a significant increase in stock prices since our last review of the sector. However, in our opinion, current quotes do not fully reflect possible significant dividend payments. Our dividend forecast for IDGC CP assumes a minimum payment of 3.8 kopecks. per share. For IDGC of Volga, the expected minimum dividends are 1.1 kopecks. per share.
