{"id":103462,"date":"2017-03-15T12:00:46","date_gmt":"2017-03-15T16:00:46","guid":{"rendered":"http:\/\/countingpips.com\/?p=103462"},"modified":"2017-03-15T09:02:42","modified_gmt":"2017-03-15T13:02:42","slug":"how-to-play-the-worlds-most-overlooked-emerging-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/how-to-play-the-worlds-most-overlooked-emerging-market\/","title":{"rendered":"How to Play the World\u2019s Most Overlooked Emerging Market"},"content":{"rendered":"
March 15, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"How<\/p>\n

\"LouisLuscious fruits and vegetables, exquisite beaches and fine automobiles.<\/p>\n

These are just a few cogs in the $456 billion Argentine economic machine \u2014 Latin America\u2019s second-largest economy.<\/p>\n

But above all, this emerging market is home to the world\u2019s hottest small-cap utility stock.<\/p>\n

This company\u2019s shares have popped by nearly 1,900% in the last five years.<\/p>\n

Yes, you read that right.<\/p>

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A boring utility stock that\u2019s outperformed the majority of the companies that make up the S&P 500 over the same period.<\/p>\n

Better yet, there\u2019s way more upside ahead.<\/p>\n

Senior analyst Jonathan Rodriguez provides all the details on the stock that not even President Trump could stamp out\u2026<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese,
\nInvestment Director, Wall Street Daily<\/em><\/p>\n

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Not Even Trump Could Kill This Stock<\/h2>\n

\"JonathanWhen it comes to emerging markets, Argentina might not be your first choice for finding high-growth opportunities.<\/p>\n

Here\u2019s why it should be, though\u2026<\/p>\n

As Louis notes above, Argentina is Latin America\u2019s second largest economy, with a $456 billion GDP, as of 2015.<\/p>\n

And after years of crippling policies, the country elected a conservative president in 2015 who was bent on reform.<\/p>\n

In the last two years, President Mauricio Macri has already shaken up the establishment.<\/p>\n

He\u2019s lifted currency controls, cut generous \u2014 but costly \u2014 federal subsidies and settled a decades-long debt default dispute with American hedge fund financiers.<\/p>\n

You may recall that Argentina defaulted on more than $100 billion of debt between 2001 and 2002.<\/p>\n

This move cut the country off from the international capital markets for more than 10 years.<\/p>\n

But the government\u2019s $4.6 billion settlement with the hedge funds to restructure debt overcomes a major financing hurdle\u2026<\/p>\n

That is, showing the world that it will make good on its debts.<\/p>\n

On his reforms, Macri has also garnered pledges of more than $30 billion in foreign investments from some of the world\u2019s largest companies: Coca Cola Inc., Royal Dutch Shell plc and Dow Chemical Inc.<\/p>\n

Last year, Moody\u2019s upgraded the country\u2019s credit rating to B3 from Caa1 \u2014 reflecting the agency\u2019s growing confidence in Macri\u2019s reforms.<\/p>\n

In fact, MSCI \u2014 one of the world\u2019s largest market indexers \u2014 will review Argentina\u2019s status as an emerging market and may include it in its EM index.<\/p>\n

JPMorgan noted that the country\u2019s inclusion in the index alone could result in a $1 billion inflow.<\/p>\n

This has the market\u2019s undivided attention.<\/p>\n

Here\u2019s how you can get in on the action\u2026<\/p>\n

More Power to YOU<\/h2>\n

Empresa Distribuidora y Comercializadora Norte S.A. (EDN.BA) <\/b>is Argentina\u2019s largest power company.<\/p>\n

The company, which is also known as Edenor, provides electricity for nearly three million people in northern Buenos Aires city and the greater metropolitan area.<\/p>\n

In fact, Edenor accounts for 20% of total market share in the country\u2019s power distribution industry.<\/p>\n

Over the last three years, revenue has grown by 10%, to 3.4 billion pesos. Earnings have grown 27% in the same period.<\/p>\n

Through strategic cost cuts, Edenor has driven growth of cash from operating activities by 497% since 2012.<\/p>\n

And while a trade war could certainly hurt emerging market companies that trade with other countries, Edenor generates all of its revenue in Argentina. This insulates the company from much of the potential fallout.<\/p>\n

The stock trades at 19.6 times forward earnings \u2014 a premium to the industry average and the broader Argentine stock market.<\/p>\n

But for a stock that\u2019s gained almost 1,900% in the last five years, that ain\u2019t bad.<\/p>\n

And Edenor makes up for its premium valuation many times over in momentum.<\/p>\n

In the last year, shares have gained 116% \u2014 versus a 40% gain for the Global X MSCI Argentina ETF (ARGT)\u2026 and a mere 19% rise of the S&P 500.<\/p>\n

The key catalyst for the recent move in shares is the stock\u2019s likely inclusion (along with eight other stocks) into the MSCI Latin America index.<\/p>\n

This, along with Argentina\u2019s review for emerging-markets classification, could attract major capital inflows into the country \u2014 and Edenor shares.<\/p>\n

The stock has retreated slightly from its 52-week high. But it\u2019s found support along its February low price around $24.80.<\/p>\n

This represents a fantastic entry point for what could be another massive upward move.<\/p>\n

Of course, this play isn\u2019t for the squeamish.<\/p>\n

But an opportunistic investor could do quite well with Edenor in their portfolio.<\/p>\n

On the hunt,<\/p>\n

Jonathan Rodriguez
\nSenior Analyst, Wall Street Daily<\/i><\/p>\n

The post How to Play the World\u2019s Most Overlooked Emerging Market<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Luscious fruits and vegetables, exquisite beaches and fine automobiles. These are just a few cogs in the $456 billion Argentine economic machine \u2014 Latin America\u2019s second-largest economy. But above all, this emerging market is home to the world\u2019s hottest small-cap utility stock. This company\u2019s shares have popped by nearly 1,900% in the last […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-103462","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=103462"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103462\/revisions"}],"predecessor-version":[{"id":103480,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103462\/revisions\/103480"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=103462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=103462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=103462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}