Buy - Sell

·        TCELL (BUY, TP 13.75) BOD MIGHT CONVENE TODAY ACCORDING TO REPORTS > Acc. to last week’s media news (following appointment of 3 ind members) TCELL’s new BoD will have its 1st meeting today. Possibility BoD can propose dividends (est TL3bn divi including blocked divi from 2010 & 2011 earnings; yield 11.5%) @ GA & can determine a date for the GA. However, distribution of divi is subject to approval @ GA (before which election of “51% TCELL Holding” rep needs to take place => only possible with 4/5 quorum that needs to be reached @ Cukurova Telecom Holding’s BoD => where Alfa & Cukurova are still in dispute). Still, any divi decision @ BoD lvl can increase hopes for its distribution & would affect the stock +VEly.

 

·        PROCESSED MEAT PRICES > Meat Producers Association announced that prices of processed meat products would increase by 10-20% <= potential rise in costs on new regulation => i) requires meat products to include solely meat content and ii) will become effective from early March. Recall: Formerly, meat processors were adding poultry in processed meat products in order to reduce production costs. Price increases would likely have some -VE impact on processed meat producers incl’g TATKS ( HOLD; TP:TL2.40), PETUN (NR) and BANVT (NR) over the short/medium-term.

 

·        KRDMD (BUY, TP TL2.01) “ANNOUNCES” SUPPLIER; INVESTMENT ON TRACK > Selected SMS Meer as supplier for its coils and high quality bar rolling mill investment. No further details are available. The company had announced in Sep that it would start work on this investment. Comment: Good news. Such official announcements are rare and imply that the investment is on track => will increase share of KRDMD’s finished products (higher value-added) in product mix. KRDMD has c1m tonnes of rolling capacity which will increase to 2.4m tonnes by late 2014 . Recall KRDMD is in the process of increasing its overall capacity (effective crude steel) to 2.6m tonnes by beginning 2014 from 1.6m tonnes currently through other investments according to our est.

 

·        ENKAI (BUY; TP TL6.40) DIVIDEND > BoD will propose => TL0.08/shr cash divi (~1.5% yield, our est: TL0.10/shr) & 14.29% bonus issue to the GA that will convene on Apr 12.  

 

·        ISE INDEX CHANGES > ISE announced the index changes for 2Q13. ISE-30 changes: Added => TAV Airports (TAVHL TI); dropped => Turk Traktor (TTRAK TI). ISE-100 changes: Added => TATKS, YAZIC, TKNSA, PTOFS, AKSEN, ANEL; dropped => BOYNR, RHEAG, CEMAS, TSPOR, KLGYO, MNDRS.