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Investing in Argentina and Argentina Stocks

Discusses *smart* ways of investing in Argentina, primarily thru ADRs on NYSE and NASDAQ. Covers companies like Grupo Galicia, GGAL, Banco Frances, BFR, IRSA(the biggest Real Estate Company in Argentina) IRS, Tenaris (TS), etc. UPDATED SEVERAL TIMES A MONTH.

Friday, January 13, 2006

YPF-the Argentine and Spanish Oil and Gas Giant

Repsol-YPF is to Argentina what Exxon Mobil (XOM) is to the United States.

It has a PE or 15, (Shares are listed on NYSE with symbol YPF), and could be perceived as one of the undervalued Oil stocks in the world. But that is understandable-after the Argentine collapse in 2001, the risk profile of the country has stayed high and investors are wary of Investing in Argentina stocks. But let's go over the company a bit.

* Repsol YPF operates in 25 countries, and is THE leader in Spain and Argentina. It is an important operator in Peru and Ecuador.
* Reserves are located in Latin America and North Africa.
* It operates nine refineries, five in Spain, three in Argentina, and one in Peru.
* The LPG (Gas) business is 3 million tons per year. It is the third largest company in the world for LPG production.

See stock chart of YPF here.

When Argentina went into crisis, the stock collapsed from $35 to $8. It then recovered really fast, and right now trades at $55. With Oil Prices rocketing and the Oil stocks in a secular bull market, this is another way to play Oil and Argentina. You are betting on a hot sector, with a player (Argentina) who is coming out of its economic doldrums. And the Gas business where it is already a very efficient and big player, should make shareholders serious money in the years to come.

The stock sports dividend yield of 5%, making it one of the very attractive plays in the Oil sector, even for a value minded investor.


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Sanjay John G.

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