Be very afraid in Argentina - Articlehttps://www.stockhouse.com/Community-News/2012/Apr/18/Be-very-afraid-in-Argentina
Los Azules is in ARGENTINA!!
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The recent decision by the Argentinean President Cristina Fernandez to nationalize YPF Repsol is the sole reason for the selling stampede out of Argentina-based names: Canaccord.
If you owned shares of companies even remotely associated with Argentina you were feeling the pain Tuesday, writes Canaccord Wealth Management in its Morning Coffee report.
The recent decision by the Argentinean President Cristina Fernandez to nationalize Repsol YPF, S.A. (OTO: REPYF, Stock Forum) is the sole reason for the selling stampede out of Argentina-based names.
Companies such as Lumina Copper Corp. (TSX: V.LCC, Stock Forum), Americas Petrogas Inc. (TSX: V.BOE, Stock Forum),Madalena Ventures Inc. (TSX: V.MVN, Stock Forum)and Crown Point Ventures Ltd. (TSX: V.CWV, Stock Forum)were all down sharply as investors worried that the YPF Repsol decision may in fact be the start of a trend. Canaccord Genuity Oil & Gas Analyst Frederick Kozak recently published a report on Argentina titled "Be afraid, be very afraid".
In the report Kozak warned investors to be very cautious of the country and asked "How bad could this get?" Kozak noted, "It is the view of industry observers and some oil and gas companies in Argentina that the seizures of the blocks (and now entire company’s) by various provincial and federal governments is likely illegal, despite most contracts having vague wording which may allow such action.
Concern stems from the forced nationalization of oil firm YPF, by which 51% of YPF.SA.’s Class D shares owned by Repsol, are declared of public interest and subject to expropriation. The move has raised fears about a possible trade war between Argentina and Spain.
On Wednesday, Lumina was down 1% to $14.84. American Petrogas rose 0.84% to $2.40. Madalena Ventures rose 1% to 49 cents. Crown Point eased 2.5% to 77 cents.