Skip to main content

Chile's Cap Rebounds as Analysts Cite Inexpensive Stock, Profit

By James Attwood and Nathan Gill
     Aug. 14, 2008 (Bloomberg) -- Cap SA, Chile's biggest iron-ore and steel producer, rose for the first time in six days in Santiago trading after analysts said the stock was undervalued and that rising metal prices may keep boosting earnings.
     Cap climbed 1.9 percent to 18,270 pesos at 12:02 p.m. New York time after dropping 12 percent in the previous five days.
     Before today, Cap had lost a quarter of its value from a late-June peak, reducing its price-to-earnings ratio to 21 from 38, amid concern that slowing global demand will damp prices for its products at a time of earnings-per-share dilution because of a planned $550 million share sale. The Bloomberg World Iron/Steel Index rose the most in six days today and Citigroup Inc. said iron prices probably will rise 30 percent next year.
     ``Cap's fall in the last few days was strange so this looks like a rebound,'' said Christian Contreras, an analyst at Banchile Inversiones. Second-quarter earnings ``were pretty solid,'' he said by phone from Santiago.
     Cap's second-quarter profit more than doubled, beating analysts' estimates, according to Bloomberg calculations based on first-half results reported Aug. 8.
     The stock's price presents ``opportunities'' to buy, Cesar Perez-Novoa, a managing director at brokerage Celfin Capital in Santiago, said by phone Aug. 11. Cap is one of Banco Santander SA's favorite stocks, analyst Francisco Errandonea said by phone from Santiago today.


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

"Open" and "Closed" Regionalism Theories

(Apr. 3, 2008) The terms "Open" and "closed" regionalism refer to the degree in which regional blocks allow nonmember nations to access their markets. In this sense, an "open region" is one with few, if any, external trade restrictions while a "closed region" can be defined as one whose external trade policies seek to restrict commerce with nations outside the region.Closed regionalism as practiced in Latin America grew out of the policy suggestions made by UN ECLAC/CEPAL school of dependency theory in the early 1960s. As discussed earlier, proponents of this policy argued that states should form regional alliances with a series of trade barriers against foreign products to foment regional industrialization and assure captive local markets for these manufactured goods. The failure of this system of integration to meet Latin America's economic goals became apparent during the 1980s and was further highlighted by the strong economic performanc…

Greetings From Gringolandia

Bloomberg Businessweek, March 28 — April 3, 2016
Susan Lamy and her husband, Jean Pierre, owned a successful interior design business in Westport, Conn., but they still worried about how they would make ends meet in retirement. “Just paying for the basic necessities was killing us, and we could see that there was no way that we would ever be able to stop working,” says Lamy. 
The search for an affordable retirement spot led the couple to Cuenca, a Unesco World Heritage site in Ecuador’s southern Andes. They settled there in 2013 and now live in a spacious apartment with a terrace overlooking the Yanuncay River. Lamy says she and her husband enjoy a high standard of living in Cuenca for around $2,500 a month, paid for by their Social Security checks: “This seemed to be the best possibility for having a really terrific life on a fixed income.” 
The combination of a subtropical climate, well-preserved colonial architecture, and low cost of living has made Cuenca a magnet for North Ameri…