RBC's success attracted analysts. However, there will be way fewer RBC stocks on the Russian market soon.

Last week, the shares of OAO RBC Information Systems found themselves in the spotlight of investors. The company announced its plans to issue ADRs, CNBC Europe began broadcasting RBC's programs, and, moreover, Brunswick UBS released an analytical report about the attractiveness of RBC shares.

According to Brunswick, RBC target share price is worth USD3.91. As of 3:00 p.m. Moscow time, RBC shares jumped 7 percent to USD3.34 on the RTS, and 6.1 percent to RUR93 (approx. USD3.33) on the MICEX exchange.

Ninety minutes later, RBC shares went above RUR96 (approx. USD3.44) on the MICEX, then went down and closed the week at almost the same level. On Wednesday, the volume of RBC trade was 5.85 times higher compared to the previous day, and totaled RUR81m (approx. USD2.9m).

Profitable television

RBC is the only public media and IT company traded in Russia. Brunswick considers it a great advantage that RBC is the only company representing the media sector on the Russian stock market.

The prospects for development of this sector of the Russian economy are huge, and the company's top management seems to be rather efficient. Analyst of Aton Capital Elena Bazhenova has been watching RBC shares for two years. She says at first it was a highly risky asset, now it is recommended for purchasing. "RBC has been performing better than we expected," the analyst said. "Both the main potential and the main risk are connected with the TV project. Now, RBC is seeing quite impressive growth. In 2004, we expect the company's losses from the negative effect of the television business at around USD5 million, but in 2005, the TV station is expected to turn profitable." It is worth mentioning that media business is traditionally considered by investors as unprofitable. In most cases, television channels are either sponsored by the government or interested parties.

There'll be enough for everybody

Now, RBC shares are mainly driven by the upcoming ADR issuance. According to reports, the depository receipts will be issued in April, each equal to 5 to 10 common stocks.

The Bank of New York was appointed as a depository bank. Elena Bazhenova believes that the ADR issue will boost foreign investment in the company, and have a positive impact on the liquidity and dynamics of RBC shares. No additional stock will be issued for this purpose, which means it will all be based on the company's free float. According to analysts, RBC's free float is approximately 36-37 percent now. It is still unclear which portion of that will be converted into ADRs. Elena Bazhenova assumes it will be the major part, with some stock left on the Russian market. Aton Capital set the target price for RBC shares as equal to USD3.81.