In the March Issue of The Oxford Communiqué, Alexander Green set his sights on a South American country that's experiencing a radical shift in power. What country? Argentina, of course. New President Javier Milei recently clinched a stunning victory there - with a pledge to rip up the entire system. For these reasons and more, Alex sees an exciting way to play the rise of Argentina. More on that soon - first, here's a snippet of his research... Like you, perhaps, I don't generally follow Argentine politics that closely. But last fall, I couldn't help but overhear the mainstream media in the U.S. warn about a "crackpot" with crazy hair in Argentina who was running for president and - while waving a chainsaw in the air at rallies - promised to slash the country's bloated government bureaucracy. Only after Javier Milei won a crushing victory over his Peronist rival Sergio Massa late last year did I start paying closer attention. And I really liked what I heard. Milei is intent on igniting an economic revolution in Argentina by sharply reducing the size and control of government through deregulation, privatization and dollarization. Argentine stocks leapt on news of his victory. Yet given the country's many long-term problems - and the skepticism of many investors and commentators - they are still among the cheapest in the world. Therein lies opportunity... Argentina is home to one of the world's leading oil and gas producers. Sales nearly doubled in the most recent quarter. And profits are likely to more than double in the year ahead. Despite this torrid growth, the stock is a terrific value - trading at less than three times prospective earnings. The upside here is considerable. And the stock gives us economic, political and international diversification. |
No comments:
Post a Comment