Credicorp Ltd. (USA) (BAP)

Watch how Peru benefits during a rebounding China or China bubble state!
-Rof

moneycentral rated: 10, navallier rated:A

Purely on technicals.... Must revert back to the mean. I'd much prefer to buy on Monday, but I'll go ahead and jump in today. BAP is below it's lower BB, and has been decreasing steadily downward for the last few days. Of course, such is the case with the other financials, however, because of the severity of the dip, I believe this makes for an excellent entry point for BAP.

I should have added this one a few years ago. Living in Peru, I've seen how well this bank is managed and their strategy. Peru's been booming for years and is expected to continue for the near term. Housing and rents have doubled in three years and consumer debt is very low. Credicorp is still wading into the lucrative microfinance sector and I would expect them to increase their profits per the relatively higher interest loans. I'll be buying on the inevitable emerging markets pullback.

Well managed bank in emerging market with many fair winds blowing for it

I was in Peru April 09 and the economy appears to be solid. The political situation is stable. Talking to the locals they are not in fear of the global downturn.

In 2007 Peru GDP grew 9%. In 2008 the growth was 9.8%. in 2009 they are projected to grow 3%, which is much better than some industrialized countries around the world.

This bank is huge in Peru, specially Lima which holds 45% of the country's population. The bank will benefit from the Peruvian government's increased spending and stable structure.

Best bank in Peru, should benefit from Brazillian effort to get a port on the Pacific via Peru. Brazil funds the infrastructure and BAP benefits. And they are the stock exchange in Peru. And they have been there forever.

Battered credit markets decrease the price, but the region is still growing and the company has a good firm footing.

One of my top bets in LATAM financial sector. Why? Not just because the analysts are expectig that the profits for 2008 reach 25% and in 2009 12% but, particullary because of the fundamentals:
Efficiency ratio = 67%
Price/FCF = 2,59x
P/B = 1,86x
PER = 7,61x
Deposit growth = 28,42%
ROE = 24%.

Apart of that, the business strategy of Credicorp is very interesting. Instead of opening complete agencies they are contrating the owers of small shops and install inside it automatic machines that can offer the basic financials services.
Even the political risk that always came to our mind when talk about investment in LATAM is not now a problem. Peru seems to be a good student in terms of monetary political and Credicorp will win with that. This is a bet for the long run!!!!!!!!!

will decline by at least 15%

This bank should benefit from the positive macroeconomic environment in Peru. Also, the Peru population is not very bancarized, offering great growth prospects.

Nice valuation after meltdown.

good writeup in IBD on this one...Peru's banks are doing great check out OFG also

BAP is based in Peru, the most fast growing country in Latin America. Peru has the biggest grow forecast, and BAP is the first bank in Peru

Largest Peruvian bank has been on fire

Just because the US is falling apart doesn't mean Peru is not a great investment opportunity.

Cramer is big on this one. Had to go with it.

great banking company from Peru. One of the up coming emerging country. It gives a great yield and good stock history performance.

Tracking Jim Cramer

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