Political Risks Cut Off Vimpel's Major Move.(THE SMART INVESTOR)(WINNING WAYS)

Byline: KEN HOOVER

Vimpel Communications became Moscow's biggest provider of wireless telephone service in 2002, edging out rival Mobile TeleSystems for the top spot. Then Vimpel set its sights on the rest of Russia.

It won licenses first in St. Petersburg, then in the central Russian Ural region, home of 24 million people. That expanded its range from 70% of the population to 94%.

At the time its stock started its move, Vimpel was growing like crazy. After three money-losing years, it returned to profits in 2001.

For the four quarters prior to its February 2003 breakout, earnings rose 329%, 270%, 957% and 110%. Sales were accelerating, up 61%, 79%, 82% and 83%. The Earnings Per Share Rating stood at 80. The Relative Strength Rating came in at 88. Big investors were buying up shares, as indicated by an Accumulation/Distribution Rating of A. The 50-day ratio of up-down volume was 1.2.

Since Vimpel's a foreign company, it doesn't have to report insider ownership. Mutual funds owned 7% of the float.

Vimpel set up in a 36-week double bottom that corrected 41%. Double bottoms carve out something like the shape of the letter W.