Market – S&P 500: No change today – MA(50) is still below MA(200). Cannot confirm an uptrend yet, but closing in. Better not to buy any stocks at this time.
BFR – Banco Frances S.A., Financial, Money Center Banks, Small Cap Blend, Based in Argentina, $9.65 (24 Sep 2010)
Collection of articles related to BFR:
- Interestingly, BFR has made into Zacks’ strong buy list on 5th August 2010: Zacks #1 Rank Additions for Thursday.
- BFR is considered a “thinly traded stock”. That could mean it is sensitive to changes in the market or changes caused by news on the company. On the negative side, negative news can bring down the price easily and in large amount, but on the positive side, the price can jump up rather significantly; Investors.com, 9 Sep 2010, Top Groups Yield 14 Hefty Dividend Plays.
- BFR came out second in The 15 highest-Yielding Bank Stocks, Fools.com, 31 Aug 2010. 8.65% dividend yield is a nice return in addition to the possibility of the price increasing in the next one year.
- Thestreet.com, in their 30 Aug 2010 article, Foreign Banks Prowl for U.S. Acquisitions reported “… BBVA (BFR) and Banco do Brasil all recently announced or hinted that they are scoping out acquisitions of US Banks, …”. This is a sign of growth. It’s strengthening its market base, readying itself for US economic turn-around. When that happens, investors should also gain from having a long position in BFR.
- Let’s now look at Argentina, how is it faring economically as a country? The author of an article titled BBVA Banco Frances: A South American Bank You Don’t Know, seekingalpha.com, 26 August 2010, gives his opinions: “… Argentina may have turned a corner for the better and possibly a return to capitalism and steady growth as long as they can avoid some politics and keep out socialist tendencies …”. Furthermore, on BFR itself: “… they have a lot of short-term capital on their books waiting to be loaned out at higher rates.” When I first found BFR, the first thought that crossed my mind was that it was a foreign bank. I did not know how Argentina’s economy is doing. The only thing that I know about Argentina is its excellent soccer players like Maradona and Messi. Well, this article provides a rather positive view on Argentina and it shows that BFR still has large capital that can potentially be turned into more revenue.
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