NEW YORK (TheStreet) -- CTC Media (CTCM) was falling 20.2% to $6.86 Monday following news that proposed amendments to Russia's "On Mass Media" law passed second and third readings in the lower house of the Russian parliament.
The Mass Media law would limit the direct or indirect foreign ownership of Russian mass market businesses, according to Russia-based CTC Media, which directly and indirectly owns several Russian companies that operate broadcast media entertainment businesses. The law affects both existing and future foreign ownership.
If the law passes it will take effect on Jan. 1, 2016, and would make it so non-Russian people and companies can't own more than 20% of Russian mass media entities.
"We are carefully evaluating the impact on CTC Media of these proposed amendments to the Mass Media Law," CTC MediaCEO Yuliana Slashcheva said in a statement. "While we do not currently expect this law to adversely affect our operating business, it does have substantial implications for our corporate structure and stockholders."
TheStreet Ratings team rates CTC MEDIA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CTC MEDIA INC (CTCM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."