I’ve been reading this FMS thread with interest and to understand where this share is heading first of all you have to understand the Russian Psyche. Most people think Russians are just like Americans with the same values but a different colour. This could not be further from the truth. I have had a lot to do with Russians for about 40 years going back to the CTC Cruise days and lived my childhood next to the Russian community near Vernon Road Strathfield and have many Russian friends in Australia who are Russian and are good people ( by the way I’m not Russian ). I have been to Chelyabinsk several times and have had a Chelyabinsk prosecutor stay at my villa about a year ago. I am also in contact with people from Chelyabinsk so I can tell you how things are going at this very moment. First of all a disclaimer. I do not hold any FMS shares and never have. I’ve got these on my watch list if ever they hit 0.10, then I’ll take a closer look. I’ve had a lot more luck trading shares than good decisions. I used to hold hundreds of thousands of shares in NMS and got out when I read the CFO left taking a small profit before they crashed. My view on FMS is that these shares will head South and they will run out of money before this deal with the Russians is resolved, if that ever is. Ok, now to the Russians and their way of doing business. A Russian friend of mine has describes Russia as a giant flea market where anything can be bought for money if you know the right people. There is no RULE OF LAW as we know it here in Australia. Russia is basically a giant kleptocracey. The average Russian survives by thieving and cunning and daily life is brutal for the average Russian.
I know someone that worked in an electrical factory in Chelyabinsk and they were ordered to wire an electrical motor in a way that the motor would burn out very quickly and they would have to replace it with another faulty motor. This was to ensure they kept employment (This was in Soviet times but I am sure that this sort of thing is happening even today). Everything today in Russia is done for the benefit and profit of oneself and not for the community at large. Moscow and St Petersburg are presented as the face of Russia where conspicuous consumption is the norm. However just move to the outer suburbs of these cities and you start moving rapidly back in time. Infrastructure has collapsed and the Soviet style apartments all need repair. I have lived in one of these apartments and it just like being in a death trap. Construction and wirering is incredibly shoddy.
http://www.youtube.com/watch?v=JQx-aG9NqRo
I have been reading through this thread and someone said have you done a Google search on this character who is trying to buy FMS out. I quickly glanced at the page and all the key words were there that you would expect from a businessman in Russia. Murder, corruption, taken to court etc. My take on this is that the woman Elena Egorova who holds just .001% of shares will be granted her wish and have the deal stopped because she has the backing of the Kremlin. This is how things work in Russia. If you want to read more about this case I suggest you read these pages from John Helmer’s website.
I stand corrected here but I think John Helmer has been thrown out of Russia for writing about business corruption in Russia. If you want to learn more about the true Russia I suggest you go to these web sites.
My advice for anyone thinking of investing in Russia is to stay well away. Just ask Shell and TNK-BP. Russia has banned Australian Kangaroo imports along with American chicken due to hygiene concerns, however this is acceptable for Russian fast food outlets.
http://www.youtube.com/watch?v=AqwULqZdB0o
This clip was sent to me by a Russian and shows Putin’s real Russia.
I don’t hold much hope for Russia. Capital is fleeing Russia at an alarming rate. The average Russian is spending any money on overseas trips instead of saving. I know of good looking women from Chelyabinsk that look like a million dollars when they travel but back in Russia don’t even have a TV or fridge in their apartment. I was speaking to someone from Chelyabinsk a few months ago who was telling me that all the villages round Chelyabinsk are now full of Chinese and if there is any crisis they only have about two weeks supply of food. Everywhere you look infrastructure is collapsing and productivity is in freefall.
I could write a book about Russia. It is corrupt to the core and the person who made it corrupt now wants to fix it. To use an analogy Putin is like a drunk driver who has crashed his car and now wants to drive the tow truck to the panel beaters.
So for all FMS holders I wish you the best of luck and hope that everything goes your way and that the Russian courts look after your interests.
FMS Price at posting:
18.5¢ Sentiment: Sell Disclosure: Not Held
(20min delay)