 Good day, fellow investors. Now, we discussed the outlook for natural gas, Shenier, and now we'll discuss the cheapest stock in the world. It's simply extremely cheap, but I will also talk about the risks, potential rewards, long-term catalysts, see if it is a value trap, so don't get too excited immediately. The company I'm talking about is, of course, Gazprom, the Russian natural gas slash oil producer, distributor, whatever. So, let's first look at how cheap this stock actually is. Price earnings ratio 2.8, price to book 0.2, price to cash flow 2.6, and dividend yield 7%. Okay, you might say jump immediately into the stock, but don't go so fast. There is potential in making money in Gazprom, but you have to account for that the stock has been cheap for the past 10 years, and it's just getting cheaper. So, when considering investing in Gazprom, it's not that much about fundamentals, how much it is about sentiment. That's what drives the market, always sentiment, and you can wait 10-20 years for the fundamentals to work, but that's 10-20 years that you might lose. If you look at the stock price, Gazprom was the darling of the markets, up till the financial crisis. Then it dropped, recovered a little bit, shale oil pressures, lower oil prices, and we are still trading at multi-year lows. This is the price it rubbles even lower in euros or US dollars, what you prefer. However, despite the negative sentiment and lower prices, I want first to show the picture what Gazprom really is, discuss a little bit the risks, and then we'll discuss about possible investment strategies into Gazprom. What's most important, Gazprom delivers 34% of European natural gas, which is huge. This means that Europe is dependent on Gazprom and will remain dependent on the company, so that's a great margin of safety. This is especially so because European gas fields are getting depleted, Norwegian fields are getting older, UK, Scotland fields, and for example, in the large Dutch gas fields in the north of the Netherlands, there are a lot of earthquakes problems. As the gas has been pulled out of the ground, the ground starts shaking, and the government has limited the amount of gas that can be pulled out. Gazprom's share is expected to grow of the European gas market. Now, Gazprom is a huge company, here you can see in blue the pipelines already existing, and then they're investing a lot of money into building new pipelines. Nord Stream 2, if you go into the Baltics, you can see the red arrow, an arrow through the Black Sea into Turkey, an arrow into China, then another Siberia power arrow going into China, Shackling, LNG exports aimed at Japan. A lot of investments for plan to be developed in the next 10-15 years. So, when a company invests a lot, the cash flows, the free cash flows are squeezed. Investors don't like that because investors prefer to get rewards now. Few investors like to get rewarded in 10 years because there is a lot that can happen from now till the next 5-10 years. So, the sentiment is a bit negative about Gazprom's, better to invest in Apple or Amazon to just go up. However, Gazprom will continue to do what they are doing. They are planning to invest 14 billion dollars per year up to 2025, which is huge. Why are they investing so much money will be explained in the next chart. You can see here, Gazprom has 17%. 17% of global natural gas reserves. And as we mentioned in the previous natural gas video, there are 200 years of reserves gas reserves available now. So, 17% of that Gazprom could cover the world demand for gas for 34 years, which is really huge. So, Europe will continue to buy their gas and their reserves are huge, second margin of safety. Just a quick look at their fields, mostly in Russia, Kazakhstan, Uzbekistan. So, closely to Russia. And investors really don't like Russia, that's a given. So, there is value in those fields. Now, we have assessed that there is huge value. The book value is low, the reserves are huge. And Gazprom is making money as the price to cash flow is also very, very low. Now, we know that there is value. But if you watched my video on value traps and how to avoid them, we know that there are some other things that we have to look in order to see if this value will ever be unlocked. And if we can make any money on it, because that's the goal, not investing in value and sitting on it for 20 years. The first thing to look at to avoid investing in a value trap is future catalysts. And especially the lack of them, if you want to avoid a value trap. So, what are the catalysts that can unlock Gazprom's value? Well, the first catalysts are the development of their new projects and pipelines, especially the commissioning of them. Power of Siberia pipeline that will go into China is expected to be online from 2019 to 2021. So, there are still four years for this project to develop. In the meantime, huge capex and cash outflows. On top of the power of Siberia, Nord Stream 2019, Turk Stream in Turkey 2019. So, we have still two, three years for those catalysts to become significant. In two, three years, politics, wars, everything can happen. Thus, this market sentiment is very pessimistic. However, in the next two, three years, probably Gazprom will jump five years because there are catalysts. However, they are a little bit long-term for now. Another thing to look at is the sustainability of the dividend. Gazprom's dividend is now around 7% per share. And you can see that the payout ratio has been approximately around 20% of earnings. So, 20% of earnings, I think the dividend is very sustainable. If something happens where they cannot develop a project, then the capex will be lower, more money for dividends. So, those are win-win situations. However, can be perceived very negatively by the market. So, expect a lot of volatility with Gazprom's share price. Just as an example, Royal Dutch Shell has had payout ratios of 700% in 2015 and 340% in 2016. So, of course, a lot of impairments there, but still huge payout ratios when compared to Gazprom. Also, we have to talk about other risk factors, and there is a huge amount of them when related to Gazprom. For example, strategic country risks, global economy risks, European gas market, sanctions, political risks. Trump doesn't want Europe to import Russian gas, he wants to import US LNG. So, there is always a fight there. Russian regulatory risks, taxes on gas, on pipelines, whatever you can imagine. The company is more than 50% owned by the Russian government. So, corruption in Russia, doing business in Russia. A lot, a lot of negative things surrounding Gazprom and we could talk days about those things. However, it's important to know. Then other risks, market risks, political risks, wars. It's a huge company all around the world, anytime, somewhere, something can happen. So, huge value, lots of risks, lots of news and current very negative sentiment. However, the market for natural gas is positive in the long term and Gazprom is well placed. A lot of investments, hugely important pipelines to transport the gas around the world. Now, let's see how we can invest in that stock. I have put here the chart in US dollars and you can see how the price has been going down for the past five years. This is logical negative sentiment. However, the dividend has been going up, the book value is huge, the value is huge, the potential is huge, but the market sentiment is negative. So, given that the market sentiment is negative, any negative news, any fears, Trump doing something, the European Union doing something can lower Gazprom's price even lower. Currency risks, everything can happen. So, if you invest in Gazprom, you have to be ready to suffer losses and expect volatility. However, there is a way to invest that and that's dollar cost averaging. We know the value of Gazprom is huge. If the price now is four dollars and let's say it falls to two, the only way to invest in Gazprom is, okay, I'll buy now a few percentage points of my portfolio and if it goes to three, I'll buy more. If it goes to two, I'll buy even more because in the long term, somewhere in the next 10, 20 years, you will get rewarded. So, to conclude, there is potential in Gazprom. You can make money off on it, but you have to be very ready to suffer temporary volatility and losses. Dollar cost averaging, as I said, is a good strategy because it's a huge company. It will be there for the next 20, 40 years. To conclude on a personal note, I'll keep an eye on Gazprom as some other investments that I hold develop and I have more cash. I will certainly look at Gazprom as an investment. If the stock price drops even lower, then I'll be even more attracted and I'll update you on what I do. So, be sure to subscribe, click like if you liked the content, put your comments down if you have some interesting things to share about Gazprom. We love to hear it because we are here to learn together. Thank you for watching and I'll see you in the next video.