What Russian shares are worth buying in August 2022 to double your capital?

💥 Severstal

Severstal is a vertically integrated company, it is fully provided with all the necessary resources, unlike the MMK, which is just a metal component.

That is, Severstal is 100% provided with raw materials, including coal-because of this, it has a higher business margin and margin of safety.

Of course, Severstal suffered stronger from Western countries than MMK and NLMK, since MMK has a large market share is Russia.

Severstal had 35% of deliveries to Europe. Nevertheless, Severstal copes with the redirect supply to Asia (deliveries to India are already actively going).

Therefore, the next year this problem will be solved. Of course, supply volumes will be reduced-now the capacities are loaded by 50% due to the fact that demand has fallen.

But as the key rate of the Central Bank decreases, the construction sector will grow, therefore, metallurgists will grow.

Severstal shares are now at fairly attractive levels in the region of 700 rubles. There is a growth potential here, but so far Severstal is not in the best position.

But we will have a weakening of the ruble in 2023 (from the forecast of the Central Bank of the Russian Federation), export will fall by 5-8%, import will be approximately the same as this year. That is, the balance will change, the export-import course will weaken, and Severstal will be a beneficiary of the ruble weakening, as the company earns money in dollars and spends in rubles.

It is not necessary to buy Severstal right now. Since, I think that after August 8, the Russian market will merge - at this moment it will be possible to buy a few shares of Severstal.

An interesting level - 580 rubles per 1 share. The potential is at least up to 1300 rubles (+80% of current marks).

💥 Small

I think the plane will grow. Because there are all the prerequisites for this. First of all, this is a decrease in the key rate.

In 2022, the average key rate will be 10.5-10.8%, in 2023-6.5-8.5%, in 2024-6-7%.

Therefore, the mortgage will be available again, and the growth of mortgage lending will lead to an increase in the profit of developers.

So far, a real estate bubble in Russia has not pouted to such an extent that it posed a threat to the economy. And, most likely, the structural restructuring of the economy will be carried out primarily due to the growth of construction - it involves a large number of people, jobs.

Also, the construction sector is included in the framework of national projects - providing people with affordable housing.

Now the rate on preferential mortgage is 7%. It can decrease to 5%, as the Central Bank reduces the key rate. Accordingly, developers will receive record profits.

In 2023, the aircraft profit can grow by 60-80%. But given that the construction sector in Russia is a rather high-risk topic, I do not recommend investing more than 1-2% of capital here.

💥 Lucil

In recent days, Lukoil’s shares slowly began to come to life - they grew by 15% of their local minimums.

At the end of 2022, the company can pay dividends - the chances are quite high. Therefore, on the horizon for six months, the shares of Lukoil are potentially interesting. Perhaps they will be actively dispersed before dividends, up to 5500-6000 rubles per share.

Because, the dividends there are predicted large-1000-1200 rubles per share.

Of course, Lukoil can cancel dividends, and oil prices are now falling - that is, there are a lot of risks.

Soon there will be a meeting of OPEC, because of this now there is pressure on oil, also, in China, a new virus led to a reduction in industrial production.

Do not forget about the US recession. If the recession does not stop in the next quarter, then against this background, oil will not be able to grow much.

Therefore, I believe that it is better to buy Lukoil from 3,000 rubles, and if you take it for a long time, you can go from 3600 rubles.

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