Centro Studi Europa dell’Est - news del 15.12.2007 - powered by www.seenews.com

NEWS DEL 15.12.2007

* BULGARIA *

Bulgaria’s Web Media Group Plans Acquisition of Newspaper Topsport for 405,220 Euro Dec 14, 2007, 19:06 CET | Story | SeeNews SOFIA (Bulgaria), December 14 (SeeNews) - Bulgarian Internet services provider Web Media Group said on Friday it plans to buy the trademark and company know-how of Bulgarian newspaper Topsport for 795,950 levs ($585,170/405,220 euro). http://seenews.com/news/latestnews/bulgaria___swebmediagroupwantstobuytopsportpaperfor405_217euro-184424

UK-based Equest Investments Balkans Considers Listing in Bucharest, Sofia Dec 14, 2007, 19:35 CET | Story | SeeNews SOFIA (Bulgaria), December 14 (SeeNews) - UK-based Equest Investments Balkans (EIB) is considering listing on the stock exchanges of Bucharest and/or Sofia, the company said without giving a timeframe. http://seenews.com/news/latestnews/uk-basedequestinvestmentsbalkansconsiderslistinginbucharest_sofia-192438

BSE - Daily Bulletin, Selected Announcements - Dec 14, 2007 Dec 15, 2007, 09:11 CET | Specialists Reports | SeeNews Forucom REIT-Haskovo, BSE code - FFI, has notified BSE-Sofia of the following:On 06.12.2007, Forucom REIT has entitled EVN Bulgaria Elektrorazpredelenie AD a limited right for construction on a part of an own estate as follows: Right to build a concrete transformer station of 6 sq. m built-up area plus the area surrounding the station in the company’s own real estate in Haskovo comprising 3,599 sq. m total area according to the plan and 3,554 sq. m according to the property deed at the price of BGN 437.60 (exclusive of VAT). http://seenews.com/news/latestnews/bse-dailybulletin_selectedannouncements-dec14_2007-090301

INTERVIEW - Bulgarian Sugar Refinery Zaharni Zavodi Sees 2007 Pre-Tax Profit Up 30% Dec 15, 2007, 09:55 CET | Interview | SeeNews STARA ZAGORA (Bulgaria), December 15 (SeeNews) - Bulgaria’s largest sugar producer Zaharni Zavodi plans to generate a pre-tax profit of up to 4.5 million levs ($3.3 million/2.3 million euro) this year, up by alsmot 30% from 2006, following investments in capacity modernisation and cuts of energy and input costs, a senior company official said. http://seenews.com/news/latestnews/_edit_waitforauthorisation_interview-bulgariansugarrefineryzaharnizavodi-125414

Shares in Bulgarian Road Construction Company Trace Surge on Debut Dec 15, 2007, 11:16 CET | Story | SeeNews SOFIA (Bulgaria), December 15 (SeeNews) - Shares in Bulgarian road construction company Trace surged 117% by 0950 GMT on Saturday on their debut on the Bulgarian Stock Exchange attracting strong interest, brokers said. http://seenews.com/news/latestnews/sharesinroadbuildertracesurgeondebut_attractstronginterest-110315

Bulgarian Grain Company Zarneni Hrani Prices IPO at 2.3 Euro/Share Dec 15, 2007, 14:30 CET | Story | SeeNews SOFIA (Bulgaria), December 15 (SeeNews) - Bulgarian grain company Zarneni Hrani will sell 25% of its capital at 4.50 levs ($3.3/2.3 euro) per share in its initial public offering (IPO) to local investors and private placement with foreign investors, the manager of the issue said on Saturday. http://seenews.com/news/latestnews/bulgariangraincozarnenihranipricesipoat2_3euro_share-132509

Bulgarian Spirit Drinks Cap Manufacturer Herti To Hold 7.0 Mln Euro IPO on Jan 25 Dec 15, 2007, 16:21 CET | Story | SeeNews SOFIA (Bulgaria), December 15 (SeeNews) - Bulgarian manufacturer of aluminium screw caps for spirit drinks Herti will hold an up to 13.6 million levs ($10 million/7.0 million euro) initial public offering (IPO) on January 25, the manager of the issue said on Saturday. http://seenews.com/news/latestnews/bulgarianspiritdrinkscapmanufacturerhertitohold7_0mlneuroipoonjan25-154612

Bulgarian Stock Indices Mostly Down, Market Awaits Trace Debut, Zarneni Hrani IPO Results Dec 14, 2007, 18:45 CET | Story | SeeNews SOFIA (Bulgaria), December 14 (SeeNews) - Bulgarian stocks indices were mostly down on Friday ahead of a long-anticipated debut of road construction company Trace Group Hold and the release of the results of grain company Zarneni Hrani’s public offering, brokers said. http://seenews.com/news/latestnews/bulgarianstockindicesmostlydown_marketsawaitstracedebut_zarnenihraniipo-181805

Elana - Bulgaria Daily Report - Dec 14, 2007 Dec 15, 2007, 09:33 CET | Broker’s Report | SeeNews MARKET HIGHLIGHTSThe red color and low activity marked the Friday’s session. The trading was volatile and indexes swung between positive and negative territory. Most companies settled in the recent price range under weak investors’ interest. Chimimport (CHIM: 15.88; +0.32%) was the most traded position as almost 112 000 shares changed hands. The holding’s subsidiary Central Cooperative Bank (CCB: 10.00; +0.60%) also gained in light volumes. The other banks closed down. Bulgarian American Credit Bank (BACB: 74.04; -4.73%) was the worst performer.Petrol (PET: 5.00; +3.52%) supported SOFIX for consecutive session. PET opened lower but the buying interest sent the price at BGN 5.00. Devin (DEVIN: 6.80; 0.00%) stayed unchanged after two large deals at BGN 6.80.December, 15 is officially working day for Bulgarian stock market. http://seenews.com/news/latestnews/elana-bulgariadailyreport-dec14_2007-092129

Bulgarian Stock Indices Mostly Down, Trace Shines at Debut Dec 15, 2007, 15:44 CET | Story | SeeNews SOFIA (Bulgaria), December 15 (SeeNews) - Bulgarian stock indices closed mostly down on Saturday in a session featuring the long-awaited debut of road construction company Trace Group Hold, brokers said. http://seenews.com/news/latestnews/bulgarianstockindicesmostlydown_traceshinesatdebut-150435

Bulgaria Schedule of Events – Dec 15-Jan 9 Dec 15, 2007, 09:23 CET | Story | SeeNews SOFIA (Bulgaria), December 15 (SeeNews) - Following is a schedule of corporate, economic and political events taking place in, or related to, Bulgaria through January 9. New or amended entries are marked (*). http://seenews.com/news/latestnews/bulgariascheduleofevents___dec15-jan9-085008

* CROAZIA *

Croatian Share Indices Keep Falling in Low Turnover in Pre-Holiday Mood Dec 14, 2007, 18:47 CET | Story | SeeNews ZAGREB (Croatia), December 14 (SeeNews) - Croatian share indices continued falling in low turnovers on Friday in dull pre-holiday trading that is likely to last until the end of the year, analysts said. http://seenews.com/news/latestnews/croatianshareindiceskeeponfallinginlowturnoverinpre-holidaymonotony-180245

* ROMANIA *

Raiffeisen Capital & Investment - Imotrust Initiation - Nov 29, 2007 Dec 15, 2007, 13:27 CET | Broker’s Report | SeeNews New Kid on the BlockImotrust Arad is an important regional real estate developer with operations in Western Romania. Despite a short history, the company proved to be professionally managed and capable of delivering its projects on time and within approved budgets. Imotrust has an impressive land bank of over 2 mn sqm that will be used for residential and industrial development. Imotrust owns 58% in Bermo Group, an important regional residential developer with bright growth prospects.Outlook: Initially focused on residential and industrial segments, Imotrust decided to expand its activity to commercial and office building segments, thus seizing the opportunities offered by the local real estate market. The management announced an ambitious development plan for the next four years that would results in a delivery of 110 ts sqm of ‘A class’ industrial space and almost 100 ts sqm of residential space. Through its majority owned Bermo Group, over the next three years the comp any intends to develop a modern office building in Arad (Bermo Plaza, 30 ts sqm) in addition to three residential projects that would deliver some 36 ts sqm of residential space. We would like to stress that only the projects for which the company has already obtained or is about to obtain construction permits have been taken into consideration.Valuation and recommendation: We use the sum of the parts (SOTP) valuation to include the value of 58% stake in Bermo, as well as the value of land, which is not part of the ongoing and announced projects. The availability of detailed information about future developments allowed us to apply the DCF valuation for Imotrust and the DDM method for Bermo. Our SOTP valuation yields a fair value of equity of EUR 125.1 mn corresponding to a 12-month target price of 2.28 RON/share, implying an upside potential of 69% (on November 28 closing). Accordingly, we initiate our coverage of Imotrust with a Buy recommendation. To crosscheck our SOTP f indings, we run a peer comparison based on P/NAV multiple. Since t e are notable differences between our peer companies and ARCV, namely in terms of size, track record and liquidity, we believe that a 15% discount to peers P/NAV multiple would be justified. A comparison based on the 2007e P/NAV discounted multiples reveals that ARCV is currently traded at a 39% discount (meaning a 63% upside potential), which confirms our Buy recommendation. http://seenews.com/news/latestnews/raiffeisencapital_investment-imotrustinitiation-nov29_2007-103742

UK-based Equest Investments Balkans Considers Listing in Bucharest, Sofia Dec 14, 2007, 19:35 CET | Story | SeeNews SOFIA (Bulgaria), December 14 (SeeNews) - UK-based Equest Investments Balkans (EIB) is considering listing on the stock exchanges of Bucharest and/or Sofia, the company said without giving a timeframe. http://seenews.com/news/latestnews/uk-basedequestinvestmentsbalkansconsiderslistinginbucharest_sofia-192438

Raiffeisen Capital & Investment -Company Profiles - Bere Azuga, Dec 2007 Dec 15, 2007, 11:55 CET | Broker’s Report | SeeNews Sitting on a gold mineBere Azuga (BEGY) is a small brewery with more than 130 years of history and a well known brand on the domestic market. The brewery is located in the heart of Buceci mountains (Prahova county), which is an important destination for mountain tourism. Due to its geographical location, the company is benefiting from high quality water sources.The company was privatized in 1999, but no important investment was done until 2005, when the steam producing unit was modernized. In August 2006, there was a change of BEGY’s shareholders structure, with Mr. Moraru, an experienced local businessman, taking over the company. Since then, Mr. Moraru has been actively involved in running the company and has taken important steps to improve the operational results. Thus, the capacity utilization rate of the brewery, which currently can produce up to 200,000 hl per year, went up from 62% in 2006 to 90% estimated for 2007. Accordingly, BEGY increased its domestic market sh are to 1.2% (as of end-September). To improve the quality of its output, the company hired an experienced brewer from Germany. Moreover, the new shareholder is implementing a new development strategy aimed at (i) increasing the beer production capacity, (ii) expanding the current product portfolio, and (iii) going into partnerships to extract higher value out of the existing real estate property. More details about BEGY’s development strategy are presented below.Currently, the company portfolio includes three types of beer sold in classic 0.5-liter glass bottles and in 2-liter plastic bottles (PET). The distribution of beer is currently concentrated in the neighboring counties with Vaslui accounting for the largest share (58%), followed by Arges (12%), Ialomita and Buzau (6.5% each).Shareholders: Bere Azuga is majority controlled by Mr. Moraru, who reduced recently its stake from 72% to some 55% in order to increase company’s free float. No other major shareholder with m ore than 5% was reported, though according to market sources, ther re several investment funds holding minor stakes in BEGY. Thus, the free float is around 45%. The company has called a GSM to be held in December 2007, where shareholders will be asked to approve a share capital increase. Some RON 7.65 mn (EUR 2.1 mn) would be raised by issuing 3.1 mn of new shares at 2.5 RON/share. The number of shares should increase by 1.3x if all new shares are subscribed. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-bereazuga_dec2007-114820

Raiffeisen Capital & Investment -Company Profiles - Comvex, Dec 2007 Dec 15, 2007, 12:10 CET | Broker’s Report | SeeNews Handling forex risk is crucialComvex Constanta (CMVX) is the largest bulk raw material handling terminal in the Black Sea area, specialized in handling and depositing dry bulk materials such as iron ore, coal, coke and bauxite. The terminal is the only one in the Black Sea area that is able to cater for large vessels of up to 220,000 tdw (tons deadweight). Its storage capacity accounts for 3.5 mn tons of iron ore, 2 mn tons of coal and 3.2 mn tons of bauxite, while its three barge loaders have a total loading capacity of 6,000 tons/hour. Comvex has an on-site railway terminal with a daily loading capacity of 10,000 mt.Shareholders: According to filings to the Bucharest Stock Exchange (BSE) dated May 2007, the majority shareholder in Comvex is Solidmet, a limited partnership that controls 52% in the company. Broadhurst Investment fund owns around 22%, while the State Assets Resolution Authority holds close to 2%. The balance (24%) is represented by free-float. We have no reaso n to believe that the shareholders structure has been altered since May. Media reports citing the Ministry of Finance website mention that Solidmet is 100% owned by Constanta-based Bulk Project SRL, which in turn is controlled by Octogon Shipping and Services SRL. The latter is in turn majority owned by local businessman Corneliu Idu (65%).2006 and 1-3Q 2007 results: In 2006, the company’s business was negatively impacted by 25% lower handlings to the most important customer, Mittal Steel Galati (which accounted for 64% of turnover last year). On the other hand, Comvex managed to consolidate its business with Alum Tulcea (+ 45% yoy) and Voestalpine (+ 164% yoy) and gain new clients (Rehnus and Carpatcement, among others). As a result, sales shed 15% yoy to RON 49.7 mn, while COGS fell 9.2% to RON 21 mn. EBIT amounted to RON 14 mn, 30% lower yoy, putting downward pressure on the EBIT margin (28.3% vs. 34.2% in 2005). Bottom line came in 36% lower yoy, with net margin at 18. 5% (from 24.6% a year earlier).The unimpressive results were the d ct result of some customers changing their raw materials intake schedule and the inability of the management to pinpoint those changes in advance. However, the company managed to mitigate some of the downfall through finding new customers. Comvex has a tight customer base, with Mittal Steel Galati accounting for more than half of total business in 2006 (down from nearly 72% in 2005). http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-comvex_dec2007-120322

Raiffeisen Capital & Investment -Company Profiles - Constructii Bihor, Dec 2007 Dec 15, 2007, 12:19 CET | Broker’s Report | SeeNews Regional infrastructure player with a bright futureConstructii Bihor (COBJ) is an important regional player in the field of constructions located in Oradea, the North-Western part of Romania. The company has two main business lines, namely (i) manufacturing of construction materials, the most important products being concrete and mortar, and (ii) general construction and civil engineering works. Currently, the company has an annual output capacity of 148 ts cubic meters of concrete and mortar. With respect to general construction activity, the company is focusing on several segments, including industrial and residential constructions, as well as infrastructure works (i.e. sewage projects, roads and bridges rehabilitation and development, etc.).Over the last years, Constructii Bihor has fully benefited from the booming constructions industry with the output of concrete and mortar increasing by more than 50% in 2006 and by 40% in 1H 2007. The same growth rate (cc. 40%) is expec ted for the 2H 2007 that would result in a capacity utilization rate of 75% in 2007, leaving room for further growth of output. On the construction services segment, COBJ has also posted an impressive result with segment’s revenues climbing from RON 6.8 mn in 2005 to RON 16.2 mn in 2006, a hefty 2.4x annual increase. In 1H 2007 only, construction services contributed to company’s top line with RON 10.3 mn, 150% up yoy.ShareholdersAccording to the local shareholders’ registry, the company is majority owned by Ghilea Gavrila who controls, directly and indirectly, 60% of the shares. It is worth mentioning that Mr. Ghilea, the majority owner, is member of the Bihor county Council (representing the Democrat Party). Another important shareholder is the investment fund STK Emergent, which acquired 27.87% of shares from SIF Banat-Crisana (SIF1) earlier this year. Free float represents about 11%. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-constructiibihor_dec2007-121654

Raiffeisen Capital & Investment -Company Profiles - Coremar, Dec 2007 Dec 15, 2007, 13:43 CET | Broker’s Report | SeeNews Liquid but not yet fully transparentSea towing company Coremar (REMO) has been established in 1991 and is headquartered in the port of Constanta, the largest in the Black Sea basin. The company is specialized in towing and handling of sea ships in and around sea ports and according to company sources holds some 50% of the market for such services in Romania. There are other six competitors on the local market, with Canal Services being the most important.Coremar has more than 100 customers, making the risk of high dependence on any single customer less relevant. The 2006 turnover was almost exclusively due to towing services (99.8%) Management suggested the company was planning to introduce international towing services as a new product. At the end of 2006, the headcount amounted to 373 employees, 10% lower yoy.Shareholders: The 2006 annual report states that management holds some 23.8% in the company, with the balance being free-float. We do not believe the situation has alt ered significantly in the meantime. At the end of 2005, the employees association (PAS), which controlled a 40% stake, has been dissolved.2006 and 1-3Q 2007 results: During 2006, Coremar posted a turnover of RON 21 mn, 10% shy of the 2005 figure. According to management, weaker sales were due to the lower port traffic and the RON appreciation (the company’s tariffs are EUR-based). Operating profit stood at RON 2.3 mn, some 45% lower yoy on an 11.1% operating margin (vs. 18.3% in 2005). Bottom line amounted to RON 0.7 mn, some 70% lower yoy.The company announced a 45% payout ratio, namely some RON 0.01 per share in dividends. Coremar has paid dividends during each of the past couple of years (RON 0.1 per share in 2004 and RON 0.03 per share in 2005). http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-coremar_dec2007-133239

Raiffeisen Capital & Investment -Company Profiles - Ductil, Dec 2007 Dec 15, 2007, 13:56 CET | Broker’s Report | SeeNews Growth prospects uncertainDuctil (DUCL) is the leading Romanian welding electrodes manufacturer, established in 1964, and privatized in 1999 to Air Liquide Welding international group. Company management points to a 50% share on the Romanian welding materials market and still, more than half of the company’s revenues come from export. Besides welding materials, DUCL is manufacturing welding and cutting equipment and in the same time supplies/sells equipment produced by Air Liquide.Shareholders: France’s Air Liquide Welding (Reuters: AIRP.PA) holds a71.35% stake in the company through its Italian branch FRO SA. Air Liquide is a world leader in industrial and medical gases, with revenues totaling EUR 11 bn in 2006. The most recent statements of DUCL to the Bucharest Stock Exchange (BVB), dated September 2007, show that Broadhurst Investment fund retains a 10.88% stake. The remaining 17.8% of the shares are free-float.2006 and 1-3Q 2007 results: In 2006, DUCL production of e lectrodes amounted to 19.2 tones, up 12% yoy, out of which 43% went to the Romanian market. The revenues were up 15% yoy reaching RON 135.5 mn, while the split between own production sold and merchandise sold was 61% and 39% respectively. The growth in revenues was pinned by an increase of 36% in revenues from merchandise sold, while sales of own production went up a mere 5%.The main categories of operating expenses included raw materials and merchandise costs, each with some 35% of total operating expenses. Raw materials expenses went up slightly faster than the sales of its own production while, on the other hand, the gross margin for the merchandise sold increased from 19% overall 2005 to 22% in 2006. Salaries were up 10%, on the back of a similar increase in the number of employees to 353. As a result, operating profit stood at RON 18.7 mn, 15% larger yoy. Interest income doubled yoy at RON 1 mn. Net profit amounted to RON 15.8 mn, 18% higher yoy. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-ductil_dec2007-135220

Raiffeisen Capital & Investment -Company Profiles - Macofil, Dec 2007 Dec 15, 2007, 14:11 CET | Broker’s Report | SeeNews Sector growth supports positive outlookMacofil (MACO) is based in southern Romania (Targu-Jiu) and produces ceramic tiles, prefabricated reinforced concrete and concrete tubes used in water adduction and other infrastructure projects. Concrete elements include pavement tiles in various shapes, sizes and colors as well as electricity poles. The company owns four quarries of sand and gravel conveniently placed around the company headquarters (between twelve and sixty kilometers). Raw materials for ceramic tiles are also locally secured. Macofil is essentially a regional domestic player. Its market spans several counties around its base. Competitors on the ceramic tiles market are Cema Sibiu, Cemacon Zalau (CEON), Ceramica (CERE), Siceram Sighisoara and Cars (CARS). For the other products, there are smaller local competitors throughout the country.The industry is highly competitive (small variations in price are very important, as quantities purchased are usually large), but loc al producers can more easily secure neighboring markets as transportation costs over long distances can be high (especially for large prefabricated concrete items).Shareholders: The latest filings to the Bucharest Stock Exchange (BVB) point to Mr. Ion Patrut as the main shareholder, with a 38.3% stake. Mr. Patrut, chairman and CEO, has actually been majority shareholder until late October, when he decided to divest part of his former 51% stake just days before the registration date for a proposed share capital increase. RC2 ltd. investment fund is the second largest stakeholder (24%), followed by SIF Muntenia (10.4%). Media reports point to another insider owning close to 5%, and other present and former employees holding small stakes. All in all, we can assume that fee float is roughly 25%.Earlier this year, the company announced its intention to increase its share capital by incorporating a 152,000 sqm plot of land, which at the time was the property of Mr. Patrut, but use d by MACO for administration and production purposes. The GSM has ntually approved the hike in share capital by some RON 7.14 mn, which is the value of the land, established by an independent valuator. Mr. Patrut will receive some 320 ts shares at a price of 22.35 each, while the other shareholders have preemptive rights for 2.13 new shares for each share owned, in order to conserve their stakes. The total cash contribution would thus reach some RON 6.7 mn should it be 100% successful. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-macofil_dec2007-140914

Raiffeisen Capital & Investment -Company Profiles - Prospectiuni, Dec 2007 Dec 15, 2007, 14:22 CET | Broker’s Report | SeeNews Profitable with growth depending on exportsProspectiuni is the only Romanian company specialized in geological and geophysical prospecting activities, with an experience exceeding 50 years. The company was privatized in 2000 and it focuses on prospecting activities for hydrocarbons and mineral resources. Seismic prospecting for oil&gas accounts for above 95% of the company’s turnover. These services can be executed through 2D or 3D prospecting, the latter providing more accurate and detailed information but requiring more resources, in terms of people and equipment. Prospectiuni has currently six teams involved in seismic prospecting and covers land and undersea works. In 2006 the company covered 4,500 km with 2D studies and 730 km with 3D. The company has its own laboratory for chemical analysis. The main clients of PRSN are Petrom and Romgaz, generating 60% and 32% respectively of the revenues in 1-3Q 2007 (47% and 29% in 2006).Until 2006, the company subcontracted the pe rforation and logging works to another company, Atlas Gip, which belongs to the majority shareholder of PRSN. Atlas Gip did not comply with the mandatory requirements of the tenders, thus Prospectiuni acted as intermediary. Starting this year, the activity was separated completely, Prospectiuni no longer subcontracting for this type of works. Atlas Gip. In 2006, sales generated by this activity amounted to 26.5% of total revenues.Prospectiuni has invested intensely in the recent years in equipment, both quality and quantity wise. The company invested over RON 28 mn in 2006, mainly in new equipment and intends to invest above RON 31 mn in 2007. Shareholders: Prospectiuni was privatized to Tender Group, owned by a Romanian businessman with controversial reputation. Tender held 85.9% of the shares at the end of 2006, and reduced its stake to 71.7% as of October 2007. SIF Muntenia (SIF4) retains an 11.9% stake and MEI - Roemenie & Bulgarije Fonds NV reported a stake of 5%.2006 a nd 1-3Q 2007 results: The turnover of PRSN amounted in 2006 toRON .5 mn, 48% higher yoy, mainly on account of larger volumes of 2D and 3D prospecting services. These represented 65% of revenues in 2006 up from 41% in 2005, while perforation and logging services as percentage of revenues decreased from 50% to 27%. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-prospectiuni_dec2007-142000

Raiffeisen Capital & Investment -Company Profiles - Severnav, Dec 2007 Dec 15, 2007, 14:40 CET | Broker’s Report | SeeNews Is weak performance due to production cycle?Severnav (SEVE) history dates back to 1852, when the first ship repairing yard was built by the Austrian company DDSG. Over time, it has developed into a shipbuilding yard and gained complex endowments. At present, Severnav designs and builds river and sea ships of up to 10,000 tdw (tons deadweight), mainly for foreign customers. Its products include container and general transportation ships, chemical products, liquefied natural gas and oil tanks, floating cranes and docks, barges, aluminum and steel boats as well as different types of yachts. In the last several years, the company has sold more than 90% of its output to overseas customers. Raw materials (steel, aluminum, fiberglass, polyurethane) are provided by local suppliers, such as Mittal Steel, Ductil Buzau and Linde Gaz Timisoara. Customers are represented by various shipping companies, and business is order-driven. Competition is stiff in this labor-intensive industry, and the company has to face not only the other local shipbuilders, but also the European and far-Eastern ones.The most important feature of Severnav’s activity is its long production cycle. This in turn leads to more sales and earnings volatility, which investors must take into account when assessing the company’s short term performance. The company also faces the foreign exchange risk. The company is exposed to this risk, with more than 90% of revenues in foreign currency and surprisingly, it does not use any hedging technique. Until 2005, the company was relatively protected and favored by the continuous depreciation of the local currency relative to both the euro and the US dollar which partially explains the lack of hedging policy. Shareholders: Until 2005, the State Assets Resolution Authority (AVAS) has been the largest shareholder (39.1%), followed by two legal entities, namely International Railway Services (32.1%) and Investment Group (21.3%). At present, the entir e 39.1% that AVAS owned has been transferred to Fondul Proprietate a fund set up by the State in order to compensate those whose properties have been seized during the communist regime (1947-89). International Railway Services has diminished its participation to 29%, while the other key shareholder has preserved its stake intact. Free float sums up to 10.5%. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-severnav_dec2007-143606

Ieba Trust - Romanian Market Daily - Dec 14, 2007 Dec 15, 2007, 09:47 CET | Broker’s Report | SeeNews For the first ten months of 2007, the current account deficit reached EUR 13.35 Bn, up 71.78% YOY http://seenews.com/news/latestnews/iebatrust-romanianmarketdaily-dec14_2007-094556

Raiffeisen Capital & Investment - Romanian Small Caps Report - Dec, 2007 Dec 15, 2007, 11:35 CET | Broker’s Report | SeeNews New small caps on the wave http://seenews.com/news/latestnews/raiffeisencapital_investment-romaniansmallcapsreport-dec_2007-112619

Raiffeisen Capital & Investment -Company Profiles - Constructii Transilvania, Dec 2007 Dec 15, 2007, 13:28 CET | Broker’s Report | SeeNews Dracula land keeps projects flowingConstructii Transilvania (COTR), located in Cluj-Napoca, central Romania, specializes in residential and industrial buildings. With its activity spanning more than 50 years, the company boasts a wide portfolio of buildings and other delivered projects. Apart, Constructii Transilvania has a special testing laboratory for technical measurements. COTR also rents deposits and other industrial areas in and around Cluj County, at the same time managing the company-owned sports complex located in Cluj-Napoca. The total turnover is divided among the fourareas of activity, with constructions segment obviously holding the bulk of sales, with 71.4% at end-2006, up from 69.5% at the end of 2005. The weight held by rent revenues is of about 27% (2006), also up from 23% a year earlier. Since the other activities essentially hold a negligible proportion of turnover, we will focus on the two aforementioned main sources of revenues.Constructions: The company is able to deliver a wide array of constructions, ranging from residential compounds to multi-storey parking area to hospitals. Currently, Constructii Transilvania is undergoing around six projects in Cluj-Napoca and vicinity, in various stages of completion. With little more than 300 employees, COTR owns the necessary equipment for performing the required construction works related to the ongoing projects. The customer base is rather concentrated, with the largest one – Cluj Napoca Local Council holding a 47% stake in total works in value terms at end-2006. Eximprod Power System (14.6%) and Akros SRL (10.7%) also enter the top three clients. Customers actually vary across time according to projects put forward or won by COTR, but notably, the Local council has also been the most important one in 2005, with some 30% of total business.Rent revenues: COTR owns a logistics park comprising two warehouses and five storage areas, accounting for a total of some 53,000 sqm. The s urface is rented to various companies, allowing COTR to benefit fr a rather stable flow of revenues on this segment.Shareholders: Until recently, the BVB website indicated that the Shareholders’ association (PAS) was holding some 67.5% of total shares. A September 24 filing, however, reads that the CEO and sibling each hold 30.5% in the company. SIF Banat-Crisana (SIF1) is the third largest shareholder, with an 18.4% stake, while the State Assets Resolution Authority (AVAS) has a minor 4.4%. The balance (some 16%) is represented by free-float. http://seenews.com/news/latestnews/raiffeisencapital_investment-companyprofiles-constructiitransilvania_dec-122948

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