Integral Argentinean Companies
Mary is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Argentina is well known for both its mining potential and its intervening government. However, Argentina’s government has been working hard to loosen its grip and move away from strict and often crippling regulations. This has opened up the Argentinean market and a number of companies that provide good value for the long-term buyer. Below are three such companies, each operating in a different sector, that share in Argentina’s potential for growth.
YPF S.A. (NYSE: YPF) is one of the most widely known of these companies. YPF is an energy company which engages in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas in Argentina. The company is also involved in the refining, marketing, transportation, and distribution of oil and a range of other petroleum products, products that are necessary to everyday life throughout most of the world. Argentina’s natural resources have been left largely untapped, and YPF is working to change that. YPF is a large company with valuable investment potential. It would certainly be a welcome addition to any diversified, long-term portfolio.
Mercadolibre, Inc. (NASDAQ: MELI) is yet another great Argentinean company. MercadoLibre, the largest online trading platform in Latin America, is a market leader in e-commerce in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, and Venezuela. Additionally, the company recently launched online trading platforms in Costa Rica, the Dominican Republic, and Panama. The Latin American region currently has one of the world’s fastest growing internet penetration rates, which will only serve to grow MercadoLibre’s already large customer base. A company with this type of growth potential holds great value for investors looking to get their feet in the door in Argentina.
Telecom Argentina S.A. (NYSE: TEO), together with its subsidiaries, provides telecommunications services to residential and commercial customers, Argentinean government agencies, and international clients. The company currently serves 20.3 million mobile customers, 1.55 million DSL customers, and 4 million land line customers--that is a large market. And telecommunications throughout Latin America are still growing. Telecom Argentina’s priorities lie in operational efficiency and the effectiveness of their planning and control process. These priorities will go a long way in attaining a loyal and growing customer base. As the Latin American market grows so will Telecom Argentina, making this company a great investment.
Each of the three companies would make a great addition to any portfolio. Argentina is coming into its own as an emerging market, rivaling Brazil as the growth story in Latin America. These three companies all have something different to offer: YPF focuses on energy, MercadoLibre focuses on the shoppers, and Telecom Argentina focuses on communications. All are areas with increasing growth potential.
MaryPosey has no positions in the stocks mentioned above. The Motley Fool owns shares of MercadoLibre. Motley Fool newsletter services recommend MercadoLibre. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.