Argentine shares are trading at a very low price. But the market does not show any indication of purchase. The lack of investment appetite is seen in a very low trading volume.
The key is to be very selective about Argentine stocks. If the purchase driver is the price , any action is in the buy zone. But the price is not enough. You can choose the best stocks under $2 to invest in the market right now.
The Government for the second half of the year, will have to accommodate the price of the delay of the dollar for the elections.
My recommendation is companies that are tied to the dollar, because I believe that in the second half of the year, it will be the mirror of the first half and the dollar count with liquidation will continue to rise.
It is a steel company that exports little, but follows international steel prices . It has a price-earnings valuation for 2022 of 6.5 times. This ratio is half of what any steel company in the world has. It has great management and a highly customized product. “Argentina is going to come out of the crisis. And given the future increase in domestic consumption (cars, refrigerators, etc.) Ternium benefits from the dispatch side.”
It is an oil company that, although it is not an Argentine company, its production is closely related to Vaca Muerta . It can be invested in pesos through Cedear and its price is tied to the dollar. Currently the paper is trading below $ 5 and had an EPO of 10. It has a price-utility ratio of 4 times. It is a company with an expectation of production and growth of 30% and in the last 2 years it reduced spending by 50%.
It is a company in the gas sector within a regulated market. But 60% of its EBITDA comes from unregulated businesses, such as liquid processing, which are priced tied to the dollar. Although it exports 40% of its liquids, 80% is sold at international prices.
Wall Street grows and the correction takes long to wait. It is difficult to guess the right moment for the correction, although the market is already showing signs of fatigue. It is currently at highs but with a flattening of the growth curve in recent months.
It is one of the main medical device companies , which did not grow at the same rate as its competitors’ companies. It recently changed its CEO, which has brought a new dynamism to the company. “My bet is that in the coming months this company will approach the growth shown by companies in the sector,” said Bujía.
Johnson & Johnson (JNJ)
The products for the final consumer in pharmacy that we all know, only represent 20% of its production. It is a company very dedicated to the manufacture of medicines and medical devices . It presented a growth of its operating profit at 8% per year and has a valuation below that of other companies in the market.
Utility has a price 10 times, being part of a very competitive industry, but is a leader in communication of data in cell . It was greatly benefited by the application of 5G technology.