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$5.90 0.61 (11.53%)
11/21/2008 4:00 PM

Cresud, Inc. (ADR) (CRESY)

CAPS Rating:
*****

An Argentine producer of basic agricultural products involved in various operations and activities including crop production, cattle rising and fattening, milk production, cattle feeding operation and certain forestry activities.

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Recs

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Avatar geologics (29.21) Submitted: 8/12/08 4:36 PM : Outperform Start Price: $12.13 CRESY Score: -10.34

I am rating this outperform, but I am less than convinced.


1) How good is all this land exactly? Argentina is a bread basket, but I am sure there is some very marginal stuff around too.


2) Tricky polotics in Argentina. There is always somebody on strike--usually rightfully so--which is a major headache. Nobody wants their food supplier to close up shop.


3) I would prefer if the CEO and his team would keep their noses down, and allow us to 'find' them while they are busy at work making money. Instead, it seems like they have plenty of time to recruit my money and that makes me nervous.





However, Argentina is fertile, food markets are tight, and who knows maybe they can untangle the gordion knot of socialist politics.

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Avatar RengePhil (< 20) Submitted: 8/18/08 10:21 AM

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Astute and to the mark!

Reached the same conclusion some time ago. Still I took a bet, Argentina is a great and still promising producer and we don't have many choices around, exept for buying directly ;-)

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Avatar smartSheep (< 20) Submitted: 8/31/08 11:25 PM

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I've read about 20-25% inflation rates in Argentina.
Can Cresud still make money in this environment?
And to what extent would I have to worry about losing 20% of it's value annually?


http://www.rgemonitor.com/latam-monitor/615/argentina_2008_is_the_already_high_inflation_rate_accelerating

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