Whoops. Equity markets are volatile by nature, which makes them hard to call, but normally investment bank stock recommendations last longer than two days.
Alfa Bank added VimpelCom (ticker: VIP) to its 'a list' of recommended stocks on May 29, only to remove it again a mere two days later on May 31.
'We add VIP to The ? List. In our view, the stock's 16% drop last Friday in response to the FAS decision limiting certain cash transactions within the group was an overreaction, and we expect the stock will rebound. Moreover, we maintain a positive stance on VIP's longer-term outlook and see the current 2012E EV/EBITDA of 3.7x as an attractive entry point,Ó the bank wrote on May 29 in a short note.
But then two days later the bank wrote in an even shorter note: 'We remove VIP from The ? list after the company announced the postponement of its AGM until December and a delay of dividend payments. We added VIP to the list only two days ago, assuming that the market had overreacted to last week's FAS injunction. We are exiting with a return of 3.1%.Ó
Well, at least they made some money on the call.