Im averaging £31 and its floating around the £50 mark…about 60% up. Not bad in under 12 months.
Not sure where the top is exactly and its a good hold for dividends, but I might use the proceeds to fund a growth stock purchase as I dont see BGEO as a forever hold for me.
Trailing p/e 5.25 (from Hargreaves Lansdowne). So not expensive if you take into account it’s growth
If you look at investment trusts in the emerging/frontier markets they tend to hold a lot of banks
A quick check,
Vietnam enterprise 3 out of the top 5 investments are banks.
BlackRock frontiers 2 (at least) out of top 5 investments are banks.
I will just keep adding to CGEO.
Georgian Prime Minister apears to be a bit of a conspiracy theorist. Is the Dream party pivoting towards Russia?
Dont own bank of Georgia shares directly but via Georgia Capital.
Sold (Georgia Capital) not waiting for this to blow over. No idea where the share will settle.
US wading in.
Cant find an article about the US state department view but it was not conducive to the share price rallying.
A post I wrote under another BGEO thread.
Two likely outcomes of this financial instability in my opinion:
[Outcome 1] The Foreign Agents Law is approved in parliament by overruling the President as she had indicated her intention to veto it once it hits her desk. The government has enough of a majority to do this. If so, expect continued protests and another ‘colour’ revolution attempts to take place. Political instability will remain until outside NGOs are neutered. Long timeframe for stability.
[Outcome 2] The government collapses in the face of pressure from protestors, oligarchs and media and western support. Another western backed leader is installed and increased agitation in Abkhazia and South Ossetia as new government will be emboldened to try and retake those regions. This may lead to regional conflict ala Ukraine, with Russia on one side and EU/NATO on the other. Outcome, Georgia destroyed as well as your investments.
I don’t think so somehow 
Sakartvelo gaumarjos!
(trad. Victory to Georgia!)
Farfetched to put mildly. Only just in the realms of possibility.
I would worry more about the next elections. Will Dream loose and will they except loosing.
I sold Wednesday.
Big jump today as they said they were going increase buy backs. Up 14% start of trading now 4%.
Parliamentary elections in Georgia 26 October 2024
I hope not i own 2k in stocks
Excellent update
"First-quarter profits at Bank of Georgia were up by more than a fifth, helped by favourable macro conditions and the recent acquisition of Armenia’s Ameriabank.
Adjusted profit came in at 369.1m Georgian lari (£107m), up 22.5% on last year, with net interest income rising 17.7% to GEL437.8m.
Adjusted return on average equity (ROE) rose to 27.7%, up from 26.7% in the fourth quarter but down slightly on the 27.9% recorded the year before - though still well above the bank’s medium-term target of 20%.
“You are now seeing the group’s balance sheet in its new shape, with assets close to $16bn at the end of March, comprising two leading, top-of-mind universal banks in Georgia and Armenia,” said chief executive Archil Gachechiladze in a note to shareholders.
Gachechiladze said “positive dynamics” in the Georgian economy were bolstering results in the first three months of the year, with real GDP growing by 7.8% year-on-year amid low inflation. However, he did caution over geopolitical uncertainty ahead of the upcoming parliamentary elections in October.
In the Georgian Financial Services division, annual loan growth was 22.6% in the first quarter of 2024, with the loan book quality said to be at “very healthy levels”, while customer deposits grew by 19.3%.
Over in Armenia, real GDP growth was estimated at 9.2% year-on-year, driving loan book growth of 30% and high profitability with the ROE at 25%.
“Following the acquisition of Ameriabank, we increased the Group’s medium-term target for annual loan book growth to c.15%. We maintain our profitability target of a 20%+ ROE, and capital distribution policy of 30-50% of annual profits via dividends and share buyback and cancellation. The teams across the Group are committed to driving strong results and success going forward,” Gachechiladze said."
And the share price has continued to fall over a cliff.
BGEO down 28% in a month.
CGEO down 30% in a month
The upcoming elections are 26th October
Volatility will continue till?
Not sure what will happen if dream win again or more importantly if they don’t.
Will they except it?
Forgot the Dream party don’t have a majority. They are dependent on the “we adore Russia party” (not there literal name). Either way I await the October elections before deciding wherever to buy back in.
BBC podcast on Georgia, is it turning away from the west.
I disagree with there view on the likelihood of the Dream party winning up coming elections
Elections over.
Georgian dream won with 54% of the vote.
Vote is full proportional representation.
As the minimum for seat in parliament is 5% and due to the opposition consisting of vast amount of small parties the Georgian Dream have a very large majority.
One upside to this is the “we love Russia” party got no seats. So Georgian Dream are not dependent on them.
Threats of mass demonstration have come to nothing. So:-
BGEO is up 21% so far this month.
The purchase of the Armenian bank at ridiculously low PE is going to add big to BGEO profits.
Click on
https://interfax.com/newsroom/top-stories/99552/#:~:text=2024%2013%3A10-,Bank%20of%20Georgia%20Group%20buys%20Armenian%20Ameriabank%20for%20%24303.6%20mln,Group%20said%20in%20a%20statement.
CGEO is making a rapid recovery 16% in the last month
I need to add more now to one or the other…or possibly both!!
Although my shares in CGEO are still well up Georgian dreams halting of the EU ascension (no chance of it happening as EU had already halted it) has not helped the share price.
Nor has helped BGEO
Yet again Georgian Dream have proved they are economically/financial competent while being politically retarded.
Rioting is now a major hobby in Georgia!
BUY MORE?
GET OUT?
NO IDEA.
I have about 2% of my ISA in CGEO (which holds BGEO in its portfolio). So I will let it ride.
Back in BGEO (Lion finance now).
Due to the politics I will not make it a substantial holding. Specially as I hold Georgia Capital which I think is 20% Lion Finance.
A difficult decision as BGEO trades on P/E of 3.3. ridiculously low.
Continues to rise. Now £65 a share. Really could do with a share split. 60 for 1 would be nice. That would allow you to add your spare cash leftover from another purchase or small dividend payments.
The latter also generally increases demand for the shares