Global expert rings up Russia

Yiannis Mostrous, editor of The Silk Road Investor, has long been a fan of global telecom stocks; his latest featured buy is Russian telecom, Mobile Telesystems (NYSE: MBT).

"Mobile TeleSystems recently reported solid fourth quarter earnings.

"Revenues were up 4% year over year to USD2.4 billion, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 3% to USD1.16 billion.

"Ukraine, Uzbekistan and Turkmenistan were the star performers, as growth from these markets came in much stronger than expected.

"Mobile TeleSystems is one of the largest mobile operators in Russia and the Commonwealth of Independent States, with almost 80 million consolidated subscribers as of September 2007. 

"Russia accounts for almost 80% of consolidated subs, while Ukraine is the second-largest contributor. The company is also present in Uzbekistan, Turkmenistan and Armenia, and operates a joint venture in Belarus.

"The company offers an 8% dividend yield, which should be viewed as sustainable given the company’s strong cash flow generation characteristic. Mobile TeleSystems remains a buy."