"Boring" Argentine Stocks like CRESY and IRS are Moving Higher
IRS is the biggest Real Estate Investment Company in Argentina. It has Malls, Office building, and some residential buildings. I have covered this company in Greater details in a previous post here.
Both stocks are trading close to their 52 week highs. They look very strong technically as well. See CRESY Chart Here. IRS Chart Here.
Interestingly, blue chips like GGAL and BFR, the two biggest private banks in Argentina, are laggards in the Merval (the Index for Argentina). This is because of "once burnt twice shy" probably; investors who lost a lot of money in the Argentine crisis of 2001 are scared to touch the Financial stocks. But that is okay by me-the risk now is much less than before, the Government is doing the right things, albeit slowly, and these stocks are good bets on the overall Argentine economy, which should grow for years to come.
I am writing this post from Santiago, Chile. Chile is the illustrious neighbor of Argentina, which, thanks to Copper riches (Chile is the biggest Copper producer in the world), is basically a developed country now. Santiago is twice as expensive as Buenos Aires, and this gap will narrow-I think Argentina will catch up to Chile. Argentina itself has a good source of commodities-thanks to its huge land mass. It is a major producer of Oil, and minerals and metals are a good part of the economy as well. Mining companies are getting into Argentina slowly; which bodes well for the Stock Market or Argentina in General (productivity improvements, wealth generation, are positives for the Stock Market).
Sanjay John G.