CEE - CEE: The Russian Catalyst Is Back (Rating Upgrade)
2024-03-15 12:42:37 ET
Summary
- The recently proposed plan offer for Western institutional investors to swap their frozen investments in Russia for Western stocks currently held by Russian retail investors could be bullish for CEE.
- The CEE's NAV is now trading at the level of the CEF price. The potential to return to the old premium alone offers the chance of 20-25% growth.
- If there's an opportunity to get rid of its written-off Russian assets, CEE's upside could be a multiple of that.
- So based on all of the above, I'm upgrading CEE to "Buy" today.
My Updated Thesis
Over the past six months, the number of my subscribers has increased significantly, and I assume that many do not know or do not remember my bullish thesis on The Central and Eastern Europe Fund, Inc. ( CEE ) published in July 2023. Since then, this small closed-end fund, or "CEF", which seeks long-term capital growth by investing at least 80% of its net assets in Central and Eastern European equities, has underperformed the broader U.S. market. However, I think that this is primarily not so much due to the failure of my thesis, but to the peculiarity of the growth of the American market, which has since clearly surpassed the European market....
CEE: The Russian Catalyst Is Back (Rating Upgrade)