Timur Turlov: a simply genius investor or a ingeniously simple affair?

Freedom Holding Corp. defies markets and we all know that it is rather a bad sign for the investors

Freedom Holding, the majority of which is controlled by Timur Turlov himself, refuses to follow the common sense. With earnings growth by 93 percent over the past year, minuscule balance sheet and solid track of records Freedom Holding raises some questions. They quickly multiply as we dive into some of the records.

Timur Turlov
Timur Turlov

The company has a high level of debts. It seems to defy the high volatility of this year. US Capital markets show 13.9 percent return while Freedom Holding manages to supply a whooping 192 percent. The shares are brutally, outstandingly and absurdly overpriced with ratio more than 10x. Based on the other factors the market valuation the fair price for the share is $3.64. Yet it is 42.44 and the growth seems to be exponential. Price to earnings ratio is twice higher than market average which is well above the safe levels. Who in the right state of mind will buy the shares? What are the reasons for any investor to buy shares of a shell company?

Timur Turlov: a simply genius investor or a ingeniously simple affair?
Freedom Holding Corp. (FRHC) at finance.yahoo.com

Every report number screams about the brutal overpricing of the shares. The growth in the share price of Timur Turlov’s company is achieved by growth of debts. Detailed analysis of the company reaffirms our suspicions.

Damn, don’t we have a Ponzi scheme here?

It’s hard to tell by analyzing the Freedom Holding alone. But the very person of Timur Turlov leaves some clues on the surface. Mr. Timur Ruslanovich Turlov has been a Chief Executive Officer of Freedom Holding Corp. (formerly known as BMB Munai, Inc.) since November 2015. He has a history of ownership of bankrupted banks and inhumanely bold PR. On more than one occasion he declared himself ‘the most influential businessman’ which is an outright lie. The media is flooded to the very neck by his PR pieces. His PR expenses are, by our evaluation, far superior to declared CEO compensation he gets.

Timur Turlov's Zerich bank has been bankrupted and lost the license
Timur Turlov’s Zerich bank has been bankrupted and lost the license.

Meanwhile, not everyone is happy with Timur Turlov. His compatriots accuse him in creating a Ponzi scheme and attracting the ‘investments’ in Kazakhstan and neighboring countries. Those voices are heard despite the threats Timur Turlov is generous to dispense to critical journalists.

According to the critics Timur Turlov’s modus operandi is to attract investors by offering more than generous returns. The dividends are paid with new input. The Central Asian republic enjoyed a high inflow of oil cash. Timur Turlov, closely related to the oil oligarchy and Kazakhstan corrupt state apparatus offers a way to legally transfer often ill-gotten money to the West. Timur Turlov is now trying – and quite successful – to offer the services of this sort to sanction-stricken Russia. That’s why FHRC often was exposed in FinCen files. There some capitalists and allegedly sanctioned persons can use Freedom Finance to get their money siphoned out of Russia and safely deposited to the West.

Timur Turlov freedom finance
Turlov’s image fits the cliche.

Except, if we get the things right, their money is far from being safe. There aren’t genius investors there. It’s likely just a reincarnation of Bernie’s favorite scheme.

Disclaimer: the author does not own the shares of Freedom Holding and does not earn either from rising or falling of its prices. The article does not endorse any operations with the aforementioned shares and securities of the Freedom Holding.

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