What am I attracted to in it? Him and Her. Sensuality, passion, jealousy, hatred. One heart. Rhythm and unpredictability. Fight and reconciliation. A bit of sadness.

Tango! My first lesson. My first emotions in this dance ...

Konstantin Y. Smolentsev
http://smolentsev.com

It happened so that I read Ayn Rand’s novels from the last to the first. It was interesting to trace the evolution of the author’s ideological views. The most famous and influential on people’s minds «Atlas Shrugged» and «The Fountainhead» are the apotheosis of creativity and concentration of world views. The short socio-political dystopia «Anthem» is an outline of philosophical ideas of the Russian-American writer Alisa Zinov'yevna Rosenbaum. The tragic and simultaneously life-affirming story about Russia is «We the Living». It has almost been a century since the events described in the first novel, but the sins of society, immediately formed by the revolutionary regime, blossom even today. And you begin to realize why the concept of free will and leadership of personality, preached by the great writer, are so relevant and close to many of the most energetic, honest and concerned people in the world.

It is the only time when I read all novels by the same write with pleasure. And with a growing desire to create and be happy.

There is an opinion that our life has the spiral development model. Fifteen years ago it happened to me to celebrate the New Year at Moscow local time. I was on the plane flying across the North Pole. Air-hostesses gave each passenger a glass of champagne. And again, here I am, fifteen years later, in the air. This time the air company was not Russian. So, I congratulated me myself and raised alone my glass to the New Year :). Is it symbolic? Is there a new cycle starting in my life?

Today the reality is that a company cannot enter stock exchange without significant achievements. The investor is fed up with vague promises and if finally decides to invest – it will be purely symbolically.

As soon as markets began to show some signs of life after the crisis, everyone immediately started talking about IPO. Moreover, a «boom» was expected not only among large companies, but also among innovative ones – «wards» of the state corporation Rusnano. I have to say, it never came. So far in 2010 there were only 5 placements totaling $687,3 million (excluding Mail.ru and «Farmsintez»). During the pre-crisis 2007, volume of placements totaled $19,5 billion. And there is no point on wishing for a miracle to happen in this last month and a half remaining of this year.

Until better changes

In the Fall, one after another, several companies decided to postpone IPO till 2011. In particular, a large in world standards manufacturer of materials for electronics «Monocrystal», aviation company «Transaero», leasing company «Ilyushin Finance Co.», Orient Express Bank and several others. Some don’t explain the reasons, some resort to traditional excuses blaming the market’s volatility.

According to Konstantin Smolentsev, Chairman of the Board of Directors of the consulting company «SMOLENTSEV & Partners», defining determinants for the activity of many companies from the list of candidates to become issuers of 2008-2009 were not the best. For example, «Transaero» has been unprofitable for three consecutive years, and in 2008 its losses increased tenfold – to 3,1 billion rubles. The company refers to the fact that in 2009 its loss of 1,9 billion rubles was «paper», that is taking into account exchange rate differences, accelerated depreciation, as well as fleet maintenance costs and investments in it that did not capitalize. Revenue in 2008 grew by 75%, but in 2009 it almost didn’t change. Nevertheless, negative earnings are the way to characterize this.

2010 has been more successful for potential issuers, that is why there is a wish to move the deadline of placements to create higher price limits. And this applies not only to public placements but also attraction of investor capital as a whole. «From our experience there was a case when we attracted a foreign venture fund for a company, but that company froze negotiations on the stage of signing a contract due to expectations of higher price limits in the next year», – Konstantin Smolentsev told Bankir.ru.

These factors, coupled with volatility on the market force many companies to delay publicity despite the need for financial means. If a year-a year and a half ago funding was required primarily for working capital or refinancing of old loans, than right now it is needed for investment and further development.

…

There is no rule without an exception

Nevertheless, some issuers decided to carry out IPO right now. The brightest example is a Saint Petersburg pharmaceutical company «Farmsyntez», which will enter the stock market on November 24^th. Placements will be held on the Market for Innovations and Investments (MII) MICEX, which enjoys the support Rusnano. All funds raised during the IPO will be used to accelerate business development and implementation of R & D-projects and expansion into overseas markets.

However, the described case can be considered special. Experts have various opinions about other potential issuers but the "Farmsintez" company is mainly referred to as a promising organization with good governance and, most importantly, with a selling product. In addition, as Konstantin Smolentsev noted, competition in the Russian pharmaceutical industry is now very low. Moreover, for many international institutional investors investing in medicine and biotechnology is the priority. Consequently, there are no compelling reasons to transfer the date of IPO.

…

In other words, both Russian and foreign investor today is very picky, and is not going to buy just anything. Therefore, only those companies should enter stock exchange that are able to convince investors in their bright prospects. And the rest should wait for better times and in the meantime work on long-term strategies.

Кira Akkerman for Bankir.Ru

12/16/2010

http://bankir.ru/publication/article/8385709

As I promised in the late September, the initial chapters of my new business novel were shown to the public. My first readers are several intimate and dear to me men and women of different ages and professions from five countries. Their opinion is very important for me. There are many experts; there are many points of view, comments and suggestions. Thanks to all! Such a start is encouraging. To be continued :)

I was recently flying from America to Russia. At the local airport some guy, while passing by, said something disrespectful and quickly left. There are a number of looser people with lots of insecurities that I have seen numerous times in developed countries. And above Europe, in an airplane of the most respected German airline, one of the stewards squatted down in the only aisle, blocking it completely and started chatting with a pal passenger. When I asked him politely to move, he glanced at me saying: «one second!», which ended a couple of minutes later only after I firmly asked for the second time. In a modern airport of Russia’s capital in the zone of passport control – huge crowd and hustle. Russians have already learned how to build beautiful walls, but organizing any process is clearly still a mystery. Periodically, an employee was running out of her booth and was yelling (or rather screaming): «Back off everyone! Idiots! I would kill you all!». Russian speaking persons understood her, but didn’t move, but foreigners, with wide open eyes, rapidly moved to other lines. I was standing there and thinking: «There’s no perfection in this world… ».

It has started. Last weekend we celebrated the coming of the New Year with the Canada Eurasia Russia Business Association. The dance of the people from the North seemed to me even more erotic that the belly dance. The beating of the drum around the fire has something magic, exciting and awaking instincts. Probably because we are from the North? :)

Chairman of the Board of Directors of IC «SMOLENTSEV and Partners», Ph.D., Academician of IIA, Konstantin Y. SMOLENTSEV has participated in the awards ceremony V National Award «The Director of the Year».

Yoga by candlelight. It’s a harmony…

In the morning I worked for one North American project with an European financier. In the afternoon I went first to the Russian Orthodox Church at the Festival of Siberian pelmeni, and then to a charity vegetarian evening organized by a Canadian NGO that promotes the environmental protection. In the evening I worked for another international project with a U.S. lawyer. During the day, I also managed to watch a great Russian comedy and to drink in a good company a glass of Italian wine with a German cheese and Mexican grapes. I did all this on Sunday. Isn’t it great? :)

Jesus Christ forgave everyone. But helped only those who were sincere in their intentions.

Konstantin Y. Smolentsev
http://smolentsev.com

Recently I’ve been invited to an event with the Prime Minister of Canada Stephen Harper and several senior officials of the government of Canada. There were representatives of 35 different countries. The event took place in an enormous auditorium. At the entrance no one asked me to show an I.D. There wasn’t even a familiar to Moscow’s cinema or circus metal detector. For the entire auditorium there were only 6 security guards. After the event I went outside and it happened so that the PM’s cortege was there. Cortege – is actually too big of a word for what I saw comparing to Russian standards. Not even a new Cadillac of the Prime Minister was followed only by two, also pretty old Mercury cars (one of Ford’s brands). Police wasn’t seen anywhere, not even on the horizon. Following the rules, the cortege let me pass, as I was a pedestrian. It accidentally turned out that my car was traveling in the parallel lane to the cortege. Yes, you got it :), for 10-15 minutes I was driving right next to PM’s car. There were no wailing sirens or flashing lights, and no police. The speed was what was allowed by the signs – 50 km/h. There were no limitations of how to drive in front or to pass the cortege. At intersections the cortege was letting cars pass. I was driving right next to the car of the head of one of the most developed countries in the world, looking at Mr.Harper through the clear windows of his car and thinking of Moscow and other big and small cities of Russia. I was hearing the thunder cries of sirens, seeing blinding lights passing by with crazy speed, like in the best thrillers guns were sticking out of the windows, I was feeling the nervousness of citizens of the great country, involuntarily sacrificing minutes and hours of their lives for the emergency deeds of the leaders of our «empire», its cities and regions. Perhaps, democracy differs. Leaders of developing countries talk a lot about it. Of course the level of life also differs. No need to dispute this because mass media gives an opportunity to compare without leaving the country. But the criterion to answer all questions is the same and very simple – the difference is in the lifestyle of an ordinary and an unordinary citizen, including in an unordinary Russia.

Konstantin Y. Smolentsev
http://smolentsev.com/

A highly respected by me philosophy professor F.A.Selivanov many years ago said approximately this: «First, people (or government authorities? I don’t remember really) do things and then philosophers justify their actions». I have devoted many years to the sphere of finance, but looking at the analysts of investment banks, I always got the feeling that: «First, something happens on the market and then analytics try to justify it». No offense to analysts. The world is just built this way.

Konstantin Y. Smolentsev
http://smolentsev.com

There is a trick in psychology. The patient is asked to imagine his own funeral. To look from the side on the people that came, listen to what they are saying, how they act. And then build your life in such a way that the only ones to come would be people who were close to you, for them to speak words after which you would realize that your life had a purpose, and you’ve lived it how you wanted to. I was thinking about that while watching «Corteo» of the Canadian Cirque du Soleil. Don’t want to steal bread from critics, but the performance was bright, interesting and talented. But most importantly, I felt how my soul is purifying, how from under the routine of life and conventions of adulthood, something pure, sincere is breaking out, which I want to save till the day I die.

Konstantin Y. Smolentsev
http://smolentsev.com