Jim Cramer "BAP's" Us Over The Head With CreditCorp. Maybe a Good Play If You Have the Dough.
With U.S. Markets Lagging. All Eyes Are on Latin AmericaWith the U.S. markets sucking wind as of late, wouldn't it be great if there were other markets out there showing the characteristics once boasted by the good ole U.S. back in it's heyday? You remember, when paying off debt was the "in thing"?
Well, my favorite financial television personality - Jim Cramer - presented a very exciting idea on the Monday night edition of his Mad Money program. The Boo Yah man himself thinks that Peru is the next hot South American market..
Peru's economy grew by about 7.5% in 2007 and is set to expand by about 6.3 this year, while inflation remains low (around 2.3%). The country is littered with natural resources including: natural gas, lead, copper, zinc, silver, gold, iron ore and coal.
There is also a great deal of fertile soal for growing crops, a solid tourism industry, and the middle class is starting to catch up to the richer upper crust and is becoming more and more qualified to receive loans, which they reportedly pay back with religious fervor.
With major banks in both Brazil and Columbia already bringing some hefty returns to investors in recent years, Peru appears to be following in their footsteps with BAP! For those unfamiliar with what I'm talking about, the company is CREDICORP LTD (NYSE: BAP).
Here's another article that provides Jimbo's take: "There are no signs that domestic economic woes are abating, and Cramer says 20% of all portfolios should consist of international stocks. On Monday, he ventured to Peru, with a GDP of 5.6% and an inflation rate of only 2.3%, to recommend BAP, a banking and insurance company. Peru’s economy is booming thanks to rising mineral prices and there is no credit crisis. Cramer likes BAP because it trades at 11.4 times 2008 earnings, has superb management and growth."
Although the stock appears to be trading at a premium, there should be room for growth here. The stock gained $4.24 today, or more than 5%, and investor interest is growing rapidly.
Labels: BAP, Creditcorp Ltd., Peru
posted by "Staff" at
10:50 AM
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