As is known “diamonds are the girls’ best friends”. However, the wish for the jewels demand a great deal of money. Their earning sounds more possible with the indirect diamonds owning through the shares purchase. A little bit about Alrosa was founded in 1992 in Russia and it is the enterprise with government participation. The company is located in 9 countries and 10 Russian regions. Alrosa is the largest company with diamonds output of approximately 95% of the national one. The one-fourth of the world extraction was taken by this company in 2014 (in comparison with 18% in 2002). Diamonds that are sold both in local and foreign markets form the main part of Alrosa revenue, roughly 90%. Macroeconomic situation To begin with, Russian crisis didn’t reflect on Alrosa as the situation abroad is stable enough and the company is export-oriented (according to the Ilya Ryashin, head of the company, report). The income decline by the end of 2014 for about 10 billion rubles is connected with the ruble plunge regarding to dollar, as IFRS standards demand the loan revaluation at a last day of the year exchange rate. There were some problems with the special foreign equipment because of sanctions. Nevertheless, it didn’t harm the ability to obtain raw materials significantly as there are national providers of such kind of facility (even if the quality is lower). Moreover, the diamonds extraction started at a new kimberlite tube in Yakutia. What is more, it is the first tube brought to exploitation for the last 10 years. In addition, not only diamonds but also gold and platinum are going to be mined in 2016. It will not be much costlier and investment-demanding as the process is nearly the same as for diamonds extraction. Finally, the forthcoming Federal Reserve System session where the decision about future refinance rate is going to be taken may influence the shares price. If the rate is increased from lowest level of 0,25% (since 16.12.08) shares price will have an opportunity to move up (dollar will become stronger, ruble will fall that will make export more lucrative). Fundamental factors According to the graph bellow there is a positive dynamic of dividend payments for the 2011 onwards. For the 2014 the amount of dividends paid was 1.47 per share despite the income decline. It means that the company is ready to answer its obligations to the shareholders even when there is a financial activity decline. Name 2011 2012 2013 Dividends per share, rub 1,01 1,11 1,45 Dividends paied, mln rub 7439 8175 10826 DPR, % 28% 24% 35% (where dark grey – dividends payments, mln.rub; red line – EPS dynamic, %) According to the company’s annual report There is no need to make a comparison with other Russian companies of the same industry as it is the largest one and can be called a monopolist. However, it is worth saying that the company managed not only to achieve its KPIs in 2014 but also to obtain hopeful perspectives for the future. Name 2014 2015 (approximate estimation) 2016 (forecast) plan fact Market yield of shares,% >32% 46% - - ROE,% 18% -11% 19% 21% EBITDA,% 37% 45% 40% 42% Revenue, mln $ 4980 5045 4995 5489 Diamonds output, mln carat 36 36,2 38,2 39,8 Net debt/EBITDA <2 1,9 <2 Made by TRADEIntime according to the company’s report As is observed nearly only ROE is less than it was planned for 2014. It is connected with the loss in 2014 because of the exchange rates (it was explained in the beginning). EBITDA rates of more than 40% by 2016 is stable and very illustrative result of company’s attractiveness. Moreover, revenue growth in 2016 in contrast with 2014 is predicted to be approximately 10% that is together with output increase is significant development indicator.Made bby TRADEIntime according to the company’s report Technical analysis According to the www.tradingview.com The picture reveals that for the YTD period (daily graph) the Alrosa shares several times during two last months achieved its minimums including todays min of 50,72 per share. AC indicator changed its direction and the two positive lines are observed. Being a kind of a leading indicator it shows up a forwarding trend change. According to the www.tradingview.com The monthly graph points out the slight possibility of future increase. However, we can’t be absolutely sure as Stochastic reached the lowest level of 20 but didn’t noticeably crossed this line. Moreover MACD doesn’t give visible signals for the just-now growth.That is why there is a possibility of buying shares, at 50,8, putting stop-losses at 50,3 (at the bottom of the next candlestick shadow) and having significant loss after the price broking the level. Why it is worth buying 1.Being export-oriented the company is less subjected to Russian internal crisis and government participation and support make it more stable. 2.Being the largest diamond mining company in Russia and having 25% of the diamong output worldwide it has a great ability for innovation and for new minefield development. That makes the company attractive for the long-term purchase. 3.Dividends payments are higher every year even in the case of losses together with the ability to achieve KPIs seem to be a positive factor for investors. 4.To increase liquidity Alrosa was able to negotiate a contract with VTB bank in order to prolong their 600 mln$ credits till 2018 that, together with other measures, gives it an opportunity to dispose barriers for getting to public loan markets in 2015. 5.The prices are at their lowest level for the last year. It is appropriate time for shares purchasing. That is why we are going to include Alrosa in our investment portfolio. Nevertheless, it is better to wait a day or more to be sure that there will not be sharp price decline and to observe more visible indicators response.