RSHYY - No Miracles In RusHydro's Results; The Stock Now Is Where It Should Be
While the Russian economy suffers from exogenous factors, RusHydro (RSHYY) doesn't lack internal ones to disappoint investors. Reported earnings were crushed by write-offs, and RysHydro's management declared higher-than-expected CAPEX guidance for this year.
Against this background, it makes no sense to recall the relatively good annual production results as 1.6% YoY revenue growth was overshadowed by growth in operating costs (+6.9%) and massive write-offs.
There are three simple indicators when it's worth investing in RusHydro: no massive write-offs, no additional stock issuances, and consistent CAPEX guidance. None of these conditions are in place at the