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Emerging Market Turnaround in Pakistan?

Posted June 9, 2008

video on crisis trading opportunity in pakistan adrs

Pakistan’s stock exchange just dropped 25% on rumors of political instability. This has all the hallmarks of a spectacular TFN Crisis Trading opportunity. We’ve picked the one stock we think will rebound the most.

Find out about the full extent of the crisis in Pakistan…

by J. Christoph Amberger

Baltimore — (TFN): While investors are dillying and dallying in and out of the U.S. markets, the stock market in Pakistan has taken a beating. After hitting new records just last April, stocks have fallen to their lowest level in almost 14 months.

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Blame rumors surrounding President Pervez Musharraf potential resignation. Or blame the fact that militant Islamists just blew up the Danish embassy.

The Karachi Stock Exchange’s 100-share index has lost 25 percent from its record high in April. Bank stocks in particular have plummeted. Pakistan’s United Bank Ltd. has fallen more than 50% since mid-March.

So has Pakistan’s most profitable bank. It has an average margin of equity of 38 percent and loan profitability of 8 percent… a market share of 8 percent in terms of assets… 1,026 branches across the country and more than 4 million customers.

In fact, this bank is so attractive that Malaysia’s biggest bank just agreed to pay over $920 million for a 20 percent stake, at an 11 percent premium.

And yet, the ADR costs just around $8.

Check out our free Hot Stock Confidential this Thursday to find out what stock to buy.

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Posted by J. Christoph Amberger · Filed Under Featured Video, International Investing, Videos 

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