I’ve always believed that distressed situations lead to great investment opportunities. For example, during the Greece (Euro) Crisis, many equities like Coca Cola Hellenic (symbol CCH) became too cheap. With Turkey experiencing riots, the Istanbul Stock Exchange has been falling rapidly. I thought it would be a good idea to ferret out some companies that may be falling in value irrationally. One company that has come to mind that I’m closely monitoring is Turkcell Iletism Hizmetleri ADR. From yahoo finance:
Turkcell Iletisim Hizmetleri A.S. engages in establishing and operating a global system for mobile communications network primarily in Turkey. It provides mobile voice, broadband, and other services on postpaid and prepaid basis. The company offers voice services, mobile broadband, and other mobile services; and various consumer products and services, such as credit balance, call management, purchases and payments via SMS, security services, information packages, finance and government-related transactions via mobile, entertainment services, and social networks, such as Facebook SMS, Twitter SMS, and other chat services. It also provides various mobile applications, mobile marketing, corporate products and services, partner services, smart enablers services, authentication services, location-based services, and machine to machine communications. In addition, the company offers mobile payment, digital media, and international roaming services. As of December 31, 2012, it had approximately 21.9 million prepaid subscribers and 13.2 million postpaid subscribers.
Turkcell has a strong balance sheet with about $10 Billion in Assets and only about $3 Billion in liabilities. Turkcell also generates consistent positive free cash flow generating just over $1 billion in the 4th quarter of 2012.
Keep your eye on Turkcell. They are a great company with strong assets and great cash flow. The situation in Turkey may cause this company to become mispriced.