Proiect burse, mărfuri și valori - stock exchange

1. SIF Transilvania

1.1Company description

SIF Transilvania SA (Societatea de Investitii Financiare Transilvania SA) is a Romania-based closed-end fund. Its main activities focus on the administration of shares, management of its own portfolio of stocks and shares, as well as investment and brokerage activities. As of 2009, the Company owns shares in 265 companies. These companies are active in such fields as tourism, banking, machine building, food and beverage, building, finance, chemical, industrial and construction sector, agriculture and pisciculture, transportation and others.

The stocks deposits of SIF Transilvania SA are kept by ING Bank NV Amsterdam, through its branch office in Bucharest. SIF Transilvania SA is a full member of the European Venture Capital Association (EVCA), Europe's most influential private equity and venture capital organization.

For any investment it makes, SIF Transilvania provides professionals working on each investment, having a high level of experience and industry insight. In addition, SIF Transilvania has got a broad network of contacts and resources that complements its own capabilities that can bring added value to its portfolio companies.

Due to its solid resources, SIF Transilvania is able to provide flexible financing of investment projects. It may finance projects as a leading investor as well as a member of a consortium.

The company also employs about 80 professionals in the capital market, trained in Romanian and foreign prestigious institutions.

1.2 Macroeconomic environment

For 2011 the economy of Romania is widely believed to start recovering, yet slowly and not all of the massive drawbacks can be overcome in 2011. Especially the Romanian labor market will remain in a bad shape.

The former level of unemployment in Romania of just some 9.4% is not expected to be reached again before 2014, though a first decrease of 0.3% to 9.1% is expected for 2011. Real wages in Romania experienced a negative growth -1.2% though average gross salaries grew from 1.946 in 2010 to 2.014 lei in 2011. However, the times of double digit growth rates seem to be gone for the next few years when it comes to salaries in Romania.

The GDP of Romania is estimated to grow by 3.6% during 2011, but the former level of 2010 will not be reached before the end of the this year according to the latest CNP estimations. The very same is true for exports from Romania, which have been a main driver of growth during the past years.

Inflation is believed to remain on the low side for Romanian standards, yet still on the high side for overall trends in the EU. The Exchange rate for Romania’s currency is estimated to stabilize at 4.25 RON/EUR, yet this estimate has not remained unchallenged. Several analysts expected the LEU to drop until 4.5 RON/EUR.

1.3 Sectorial perspectives

From the beginning we have to say that the financial sector has a crucial importance in the Romanian Economy. It depends in a high proportion on the interest rate. Another important factor is the high elasticity of the demand from price.

The evolution from the financial sector in 2011 will be quite similar with the one in 2010. This means many competitors that will generate the reducing of the interest on loans.

In the same time the financial sector is influenced by some political decisions. A positive fact in this way is the approval of the seventh installment loan. This will allow to the National Bank to protect the national currency from speculative movements.

1.4 Company perspectives

The main strategic objective of SIF Transilvania is to maximize the profitability of the activity and to manage its portfolio at a high performance. In this way the company established some directions to follow. They distributed their portfolio in distinct strategic categories. This diversity allows them to avoid some risks because no portfolio investment exceeds 10% of its securities and no sector should exceed 15-20% of the securities owned.

Another strategy of SIF Transilvania that may encourage the investors is that they buy securities with no risk and with an increasing market price. The acquisitions are made after complex diagnoses analyses.

Another direction of action that will be followed is to intensify the activity of identifying investment partners and opportunities for SIF Transilvania and to insure the conditions for the investors to identified SIF Transilvania and its assets.

1.5 Financial analyses

1.5.1 The financial indicators

a. ROE (The return of equity) the comparison is made for the first semester of 2008, 2009 and 2010

ROE = net profit/total liablities

Return on equity 1.87% 0.68% -0.55%

In the first and the second trimester the results are positive but the figures are smaller than the interest rate which shows that the company is not very attractive for investors as it implies high risks and offers low benefits.

b. Net profit the comparison is made for the first trimester of 2008, 2009 and 2010

The figures shows that in the first trimester of 2008 and 2009 the company was profitable but in 2010 it got losses.

c. Earning per share (EPS)

EPS (12 months) 0.0813 0.0792 0.0999

This indicator shows the earnings per shares. It is important because it shows us which is the total amount of money from the net profit that you get according to the number of shares that you have.

d. Return of assets (ROA)

Profit margin 53.88% 42.84% -82.81%

The retune of assets show how profitable a company’s assets are in generating revenue. As the figures shows in 2008 and 2009 the assets generated quite high revenues. We can’t say the same think about the last year.