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Why Peru Makes Sense

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June 19, 2009 – Comments (9)

In fact, it's the best little investment opportunity I know. A key excerpt:

You may not know that Peru -- not Brazil, not India, and not China -- was the fastest-growing economy in the world, in 2007 and 2008, with 9% GDP growth. It’s expected to remain the fastest-growing economy in all of Latin America this year as well, with an official forecast of 3.5% GDP growth.

Second, you may not know that Peru is a major exporter of valuable commodities such as copper, gold, silver, zinc, and phosphate, which should see prices rebound this year as consumption growth resumes in the major emerging markets.

Third, you may not know that Peru recently signed a free trade agreement with China that will further accelerate its economic development.

And fourth, you may not know that Peru is on the verge of completing the IIRSA highway that will link Peru’s Pacific coast with the Atlantic coast (and population centers) of Brazil. This will turn Peru into a crossroads for trade between Brazil and China -- two of the world’s biggest emerging trading partners.

Learn more here: http://www.fool.com/investing/international/2009/06/18/the-best-little-investment-opportunity-i-know.aspx

9 Comments – Post Your Own

#1) On June 19, 2009 at 9:47 AM, russiangambit (29.30) wrote:

Company NameSecurity DetailsTickerCUSIPUnderlying SEDOLRatioExchangeDepositaryRegionCountrySectorSponsorshipCEMENTOS LIMA SACEMTY15126310021856481 : 1OTCBNYLatin AmericaPeruBuilding MaterialsSponsoredCEMENTOS LIMA SACEMYY15126320921848501 : 1PORTALBNYLatin AmericaPeruBuilding MaterialsSponsoredCIA DE MINAS BUENAVENTURA SABVN20444810428949881 : 1NYSEBNYLatin AmericaPeruGold/Precious Metals MiningSponsoredCIA MINERA ATACOCHA SACATJY20447610522118661 : 1OTCBNYLatin AmericaPeruDiversified MetalsUnsponsoredFERREYROS SAFERSY31529610323201261 : 20PORTALBNYLatin AmericaPeruMachinerySponsoredCompany NameSecurity DetailsTickerCUSIPUnderlying SEDOLRatioExchangeDepositaryRegionCountrySectorSponsorshipCEMENTOS LIMA SACEMTY15126310021856481 : 1OTCBNYLatin AmericaPeruBuilding MaterialsSponsoredCEMENTOS LIMA SACEMYY15126320921848501 : 1PORTALBNYLatin AmericaPeruBuilding MaterialsSponsoredCIA DE MINAS BUENAVENTURA SABVN20444810428949881 : 1NYSEBNYLatin AmericaPeruGold/Precious Metals MiningSponsoredCIA MINERA ATACOCHA SACATJY20447610522118661 : 1OTCBNYLatin AmericaPeruDiversified MetalsUnsponsoredFERREYROS SAFERSY31529610323201261 : 20PORTALBNYLatin AmericaPeruMachinerySponsoredFERREYROS SAFERXY31529620223201261 : 20OTCBNYLatin AmericaPeruMachinerySponsoredGRANA Y MONTERO SAGRYMY38500P10920965801 : 50OTCBNYLatin AmericaPeruEngineering & ConstructionSponsoredHOCHSCHILD MINING PLCHCHDY434147104B1FW5021 : 15OTCDB, BNYLatin AmericaPeruGold/Precious Metals MiningUnsponsoredIFH PERU LTDIFHPY44950N30528436121 : 10PORTALBNYLatin AmericaPeruFinancial (Diversified)SponsoredIFH PERU LTDIFHZF44950N40428436121 : 10-BNYLatin AmericaPeruFinancial (Diversified)SponsoredPERU HOLDING DE TURISMO SAA

 

 

Would  you recommend any of these ADRs? It looks like they have some miners, but nothing really catches my eye.

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#2) On June 19, 2009 at 9:48 AM, russiangambit (29.30) wrote:

Sorry, formatting got all messed up.

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#3) On June 19, 2009 at 9:59 AM, TMFMmbop (38.86) wrote:

The Peruvian companies that are available to US investors are predominantly mining companies. We went a different route with our GG recommendation, but that's a new pick so I'd like to keep it exclusive to our subscribers for the time being. I also read that a Peruvian ETF is imminent, though I'm not sure what the holdings will be. You can read about the ETF here: http://seekingalpha.com/article/141486-the-first-peru-etf-coming-mid-june

Tim

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#4) On June 19, 2009 at 10:58 AM, carcassgrinder (36.71) wrote:

And may mother nature be benevolent in her response as we jettison the rape and contamination of yet another beautiful area of our planet.  So long Peru.

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#5) On June 19, 2009 at 11:47 AM, dudemonkey (41.23) wrote:

Very interesting.  My research was coming to the same conclusion.  I started with Brazil and my research is webbing out from there and Peru kept coming up.

 

Thanks for this insight!

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#6) On June 19, 2009 at 12:03 PM, Schmacko (66.60) wrote:

BVN sadly seems to be the only ADR that isn't OTC.  They've done well lately, but I don't necessarily know if they're really any better than the multitude of other mining stocks out there.  I know they've also had some miners strikes and mine closings recently.

Russiangambit,

If you're looking for indirect plays on Peru you could try some Chilean Companies.  Lan Airlines (LFL) controls 78% of Peru's domestic flight marketshare.  Madeco (MAD) has operations in Peru through it's flexible packaing unit and that's the division the company is really focusing the most on now.  EOC and it's parent company ENI both have power generating operations in Peru.  All those companies also give you access to the Chilean Market as well. 

It probably wouldn't be hard to find a few Brazilian companies that are similarily involved in the Peruvian market.  For instance both Petrobras (PBR) and Ecopetrol (EC - Columbian oil comapany) are involved in oil exploration and development projects in Peru. 

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#7) On June 19, 2009 at 12:11 PM, caltex1nomad (< 20) wrote:

Proceed with caution when investing in Peru. Support is growing for the Indeginous people and protecting the land.There have been several deaths recently during protests. The Bolivian President ( Who is not friendly toward the U.S.) along with Chavez has convinced the Peruvian Gov. to back away from some of their Free Trade agreements. Don't know where this is going, but it could get messy.

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#8) On June 19, 2009 at 3:06 PM, rofgile (99.29) wrote:

If you are pro Peru (which I am) - the Credicorp (BAP) is a great bank in Peru to invest in.

 

-Rof

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#9) On October 23, 2009 at 9:45 PM, BravoBevo (99.97) wrote:

I'm a little late (4 months!) to this discussion, but anyone interested in Peru will enjpy this NPR (National Public Radio) piece on the Transcontinental Highway that is being built through Peru and Brazil.

Link here:

http://www.npr.org/templates/story/story.php?storyId=112489035&intro=no  

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