Earning Release

AngloGold Ashanti Limited (NYSE:AU) announced its 2Q 09 results on 31 July 2009, with revenues and profitability falling well short of our estimates. In light of these disappointing results, as well as a downward revision in the company's full-year production guidance, we expect to lower our estimates and target price in our next update report. Therefore, at current levels, we downgrade the ADR from a HOLD to a SELL. We will reassess our ADR (1 ADR = 1 South African share) rating in our next update report. We continue to anticipate a significant negative currency impact on the South African stock over the coming 6-12 months. Therefore, we maintain our SELL rating. We will reassess our South African stock rating in our next update report.

Embotelladora Andina S.A. (NYSE:AKOb) reported a decline in 2Q 09 net sales, below our estimate, reflecting negative exchange rate impact from Brazil and Argentine operations. Adjusted net margin was below our estimate, primarily due to higher-than-expected effective tax rate. As the results were broadly below our expectations, we are likely to revise our estimates and target price downwards. However, although we expect the company to register strong growth in volumes across all of its geographies, going forward, since the target price supports a HOLD rating at current price levels, we maintain our HOLD rating for the common stock. We will reassess our target price and rating in our 2Q 09 update report. Although the ADR target price does not support a HOLD rating at current price levels, as we now expect a significant positive currency impact on the ADR (1 ADR = 6 common shares) over our 6-12 month investment horizon, we upgrade our ADR rating from a SELL to a HOLD. We will reassess our target price and rating in our 2Q 09 update report.

Telemig Celular Participações S.A. (NYSE:TMB) reported strong y-o-y growth in 2Q 09 revenues. In addition the company reported robust growth in Net income and EPS in 2Q 09. Going forward, we continue to expect the company to register strong growth in revenues driven by growth in subscriberbase. In addition, we expect the data and Value Added Services (VAS) market to be a growth driver for the company. Thus in light of these factors although current price levels no longer support a HOLD rating, we reiterate the preferred stock a HOLD and will reassess our target price and rating in our 2Q 09 update report. As we continue to anticipate a positive currency impact on the ADR over our 6-24 month investment horizon and given our fundamental outlook we do not anticipate a change in the current ADR rating. We will reassess our target price and rating in our 2Q 09 update report.

New Valuations

ICICI Bank Ltd.(NYSE:IBN) Indian Wholesale Price Index (WPI) inflation stood at -1.2% for the week ending 04 July 2009, compared to +12.2% for the corresponding period in 2008. The Index of Industrial Production (IIP) rose by 2.7% in May 2009, after a rise of 1.4% in April 2009. Meanwhile, in July 2009, the IMF revised its GDP growth estimate from 4.5% to 5.4% and from 5.6% to 6.5% for 2010 and 2011 respectively. The Indian prime minister expects GDP to grow by 7% in 2010. Considering these indicators, we expect demand for credit to increase moderately, supported by Reserve Bank of India (RBI) moves to enhance liquidity. Since mid-September 2008, the RBI has cut rates a number of times, with the benchmark repo rate falling from 9.0% to 4.75%, the Statutory Liquidity Ratio (SLR) falling by 100 bps to 24%, and the Cash Reserve Ratio (CRR) falling from 9.0% to 5.0%. The RBI also cut its reverse repo rate to 3.25% in April 2009. In its 1Q 10 monetary policy review on 28 July 2009, the RBI maintained the benchmark interest rate, and we expect that low rates will be maintained throughout 2009 in response to low-to-negative inflation. However, we expect default rates to rise, with a negative impact on asset quality over our investment horizon. In response, we expect ICICI Bank to pursue cost-cutting measures in order to support earnings growth. Overall, our fundamental outlook remains cautious for the coming 6-12 months.

Tata Communications Limited (NYSE:TCL)The Wholesale Voice segment reported a double digit decline in 1Q 10, attributable to continued pricing pressure in the International Long distance (ILD) and National Long Distance (NLD) front, further compounded by a reduction in interconnection charges from April 2009. Continued shrinkage in the addressable market due to the entry of multiple operators and falling prices is expected to result in de-growth over the next two years. Nonetheless, to offset the slowdown in the Wholesale Voice segment, TCL is focusing on increasing its data revenues. However, after reporting 4 quarters of steady growth the Enterprise & Carrier Data (E&C) segment witnessed an unexpected decline attributable to a slowdown in global IT spend. Following modest revenue growth in FY 2010 we anticipate an improvement in FY 2011 on signs that economic recovery will boost global IT spend worldwide. In order to expand it's footprint globally, TCL has inked agreements with Qtel in the Middle East region and RTComm in Russia to deliver global connectivity services and has also joined hands with British Telecom (BT) to offer voice termination services outside BT's own footprint countries. E&C, a high margin business (87.0% EBIT margin in 1Q 10) will be the focal point for TCL, while with Wholesale Voice being a laggard Management, is focusing on increasing traffic volume and cutting cost to drive margins. Moreover, we continue to expect robust growth in the other segment due to increasing Internet usage and high prospects of wireless broadband expansion in India while free cash flow is expected to remain in negative territory in FY 2010, reflecting our assumption of higher capex to fuel growth in the data business.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward

Read the full reports free of charge with free to view access to institutional-quality research on 400 companies and over 700 stocks at www.researchoracle.com

Important information for US investors.

With the ending of the Spitzer settlement in July 2009 there will be a dramatic reduction of free independent research available to investors like yourself. Although this will not impact the Research Oracle, we believe that freely available independent research is crucial for a healthy market to function. Ask your broker a/e what plans they expect to implement to continue to provide you with independent research. You may wish to read this recent coverage from TIME Magazine for more information.
Copyright © 2009 Independent International Investment Research PLC. All rights reserved.

http://www.time.com/time/business/article/0,8599,1893519,00.html