Argentine stocks have suffered due to the business unfriendly government, and as a result, some dividend paying stock is cheap. One such opportunity exists with property management stock Alto Palermo (APSA, quote) based in Buenos Aires.
The Argentina oil industry has been more or less reduced to a utility under a presidential decree announced last Friday. But the new rules don’t provide the kind of monopoly risk profile usually associated with lower margins.
Tuesday’s best web covers BP’s unsuccessful attempt to secure a dividend from TNK-BP, the Argentinian economy, ASEAN politics, Jim O’neill’s latest comments, and the global gold supply.
President Cristina Fernandez’s recent edict forcing Argentine banks to lend approximately $3.3 billion to businesses at below market rates by the end of the year has sent some bank shares significantly lower.
A recent leading economic indicator, published by Torcuato Di Tella University, put odds of a recession in the Argentine economy at 95% for a second consecutive month. Over the last 18 years, the indicator has forecasted recessions 4.3 months in advance and growth periods 2.7 months in advance.