May 23rd, 2011

(no subject)

Business Week on Yandex's upcoming IPO:
In its prospectus, Yandex warns investors that "well-funded, well-connected financial groups" in Russia occasionally use "economic or political influence or government connections" to take over independent companies. "Our ability to thwart such efforts may be limited," the prospectus reads.
The Reformed Broker calls it "the most hilarious (and scary-true) risk factor from the Yandex Red Herring prospectus...In other words: 'If the government decides that someone else should control Yandex, they will kill our families if we disagree.'"

Brown (the Reformed Broker) adds "Russian stocks scare the hell out of me, I've only ever invested there through the index and even then sparingly. This is because the Kremlin can essentially do whatever it wants in the corporate world with only itself to answer to."