CTCM (CTC Media)

I was impressed with the way CTCM has traded up in recent days despite the weaker market overhang. The stock came public last summer at $14 and made a nice run from that point. It has since pulled back and appears to have found support just below $20. I am encouraged with the strong selling volume earlier this week as the weaker holders were likely shaken out of the name. Then as it traded back up the volume picked up even more showing institutional interest in the shares.

The company is a Russian television network and as such bears some international and political risk. It would not be unprecidented for the Russian government to confiscate private assets and nationalize them. Media companies could be especially vulnerable to this and so I would not want to take an extremely large position because of that risk. However, the potential is great and I think taking 7,500 shares allows me to benefit without running the risk of a devestating blow to investors capital if things should go south.