IKN

a plague o both your houses

stocks wot I likes ‘ere

It’s the first question I get asked when people find out what I do for a living. So rather than name some specifics, I’ll name a couple of sectors and parameters that are worth investment in today’s LatAm.

1. Large junior copper miners.
All those words count, people. The best plays in junior mineworld down here are copper plays, they are big resources, and they are either greenfield or they are still under early stage construction. There are at least six names I cover and like that fall into this category, and I’d hold every one of them happily through this credit crunch.

2. Small producing miners.
They can be pumping out base metals or precious metals or both; really don’t mind. The trick here is to find little companies that are cash flow positive and have been sucked down by the junior mines selloff by people with the analytical capacity of a banana. Too many good companies are selling at tiny earnings multiples just because they’ve been lumped in with the juniors with no cash and not much chance to raise capital. Just wait ’til the earnings come in and a 50c stock earns 8c in a quarter…..bargain says byebyes. Get ’em now.

3. Agro
Of all types…this sector is getting really sexy all of a sudden. I like sugar plays in various countries, as they get the ethanol kicker, too. Now the dunderheads have finally worked out that corn or switchgrass are silly silly silly options to produce biofuels and sugarcane is the cheapest way to juice up the world via agriculture, the sector will rise and rise.

4. Service and banks
Not all of them, but a good LatAm growth company in this area is a dead cert for longer term appreciation. I’m keen on a couple of telcos right now that have been beaten down for no real reason.

I’ll get into nitty-gritties and probably pass on specific names as i get into this blogging game, but too much stocktalk gets boring. Prefer to slag off a few politicos first.

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