Skip to main content

Chile’s Vapores Sinks to 6-Year Low on Cash Concerns

By Nathan Gill
March 12 (Bloomberg) -- Cia. Sudamericana de Vapores SA, Latin America’s largest container ship company, plunged as much as 13.9 percent and closed at a six-year low on speculation it will struggle to pay maturing debt.
    
The share tumble, which followed an 8.7 percent slide yesterday, prompted the Santiago Stock Exchange to request financial information from the company. Vapores Chief Executive Juan Antonio Alvarez replied in a statement that the company has “no relevant news” to report beyond what was made available in its last quarterly results, according to a posting on the exchange’s Web site.
    
“There’s a rumor that they need cash,” Cristina Acle, director of equity research at CorpResearch SA, said today by phone from Santiago. “The problem with Vapores is that they have very opaque finances. You can’t see all of Vapores debt in their financial sheets. This adds risk to the company.”
    
Valparaiso, Chile-based Vapores fell 2.3 percent to 317.9 pesos at 5 p.m. New York time in Santiago trading. It’s dropped 20 percent in the past six days.
    
The company in January reported a $38.6 million loss for 2008 and forecast “important” losses and service cutbacks this year amid a global slump in shipping.
    
CorpResearch has a target price of 450 pesos in the next 12 to 18 months and has a “buy” recommendation for the stock, Acle said. “Even if the company has problems, this is definitely an excessively low price,” she said.

Comments

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…