1. RUSSIAN BLUE CHIPS:
FORMATION, DEVELOPMENT,
PROBLEMS & PROSPECTS
PLEKHANOV RUSSIAN UNIVERSITY OF ECONOMICS
Group 5202:
Rzaev Abir
Kholoptcev Daniel
Titova Ekaterina
Dubinin Alexander
Fedortcov Pavel

2. is stock in a corporation with a
national reputation for quality,
reliability and the ability to operate
profitably in good times and bad.
A blue chip -

3. An interesting fact is that blue chips came to the
stock market from casino – chips of such color
have the highest cost in the game.

4. Usually blue chips are the indicators of all
the market, because if prices for shares of
largest companies increase, than stocks of
“secondary“ organizations will also rise.

5. Selection criteria:
the amount of stock in free float
accounting transparency
growth rate
 stability of dividend payouts
 free sell of stock on the regulated markets
 profitability
net assets
 trade turnover
 presence of vacant jobs
 interest of investors.

6. USB Financial Services, Inc. chose companies
that have at least four of the six following
characteristics to be considered a blue chip:
rated by the sponsor;
market capitalization in excess of $5 billion;
financial strength, a record of profit growth and reputation for
skilled management;
established, well-known company considered to be stable and
mature with a reputation for providing high quality goods and
services;
leader in its market niche.
In addition, companies are analyzed for their record of earnings
over a relatively long period of time and future potential.

7. Other terms that are often used in conjunction with blue
chip include “Bellwether" and "Market
Capitalization."
Bellwether is a term
used to describe a
company that is
recognized as the
leader in its industry.
Market capitalization is
simply calculated by
taking the number of
shares outstanding and
multiplying by the
stock's current price per
share.

8. As the blue chips form their stock price
become the determinant of stock
indexes:
 MICEX (Moscow Interbank Currency Exchange -
established in 1992, the most liquid and best
organized financial exchange in Russia.)
 RTS (RTS Stock Exchange)

9. Development

10. Development

11. Development

12. 1. blue-chip companies are not necessarily
blue-chip investments
2. ‘’large'' and ''high quality'' are not
synonymous
Problems:

15. Prospects:
At the moment is "blue chips" are the most
stable, liquid, transparent and safe for
investors in shares in the Russian market.

16. Most of the time "blue chips" have steadily
increased, especially in a growing market
(such as the Russian stock market). For
example:
 over the past 5 years (from 2002 to 2007) Sberbank rose
by 40 times or 4000%.
 UES (The Uralenergo-union) shares for 5 years, rose in
price by more than 700% (or more than 7 times)
 shares of "Lukoil" increased in value by almost 600% (or
6 times).
 Analyst’s estimate that from 2002 to 2007, shares of
"Lukoil" every rose in price by an average of 47%.

17. "Blue chips" - shares of the most stable and expensive companies
that from year to year show an increase in value.
Shares of major Russian companies grow slowly but surely.
Main feature of "blue chip" is their reliability
In the long term positive tendency, value of the shares grows
(without speculation)
Oil companies – the most promising among blue chips
With the growth and modernization of an economy comes the
decrease in blue chip value.
Little risk of bankruptcy and as a consequence of the collapse of
value because blue chips well-known and established companies,
the foundation of the Russian economy. Of course, if it is not a crisis.
Conclusions and facts:

18. Thank you for attention!