Thursday, January 16, 2014

Banco Marco S.A. (BMA)

Banco Marco(BMA) is not necessarily a well known name in the US, you can pick up shares through the NYSE as ADR shares.  It is a leading bank in Argentina with the most extensive private sector branch in the country.  BMA provides general banking services to a nationwide customer base.  Banco Marco from South America has seen a 52 week high of 32.85 in October and has since dropped down to 22.53 as of today.  Even though it has fallen throughout the last couple of months it will soon be on the rise again.  Overall since last year it is up 28% even considering the recent drop which is not too shabby.  Some of the leading stock ratings companies have buy or strong buy ratings on BMA, Sabriet Investment Research has them listed as a "strong buy" while others such as The Street rate it a "buy".  I would expect to see BMA reach its previous 52 week high of 32 per share sometime during 2014.  If you do the math that's over a 40% gain if you were to buy near today's quoted price.  Right now BMA has a P/E of 3.6 which shows good valuation and a return on equity of over 25% which shows good management efficiency.  On another positive note, it has a market cap of over 1.3 billion dollars.  Generally you can relate the mid and larger cap stocks to being less volatile due to the large spread of wealth distributed amongst more investors and investment firms.  I say buy it, but then again for some reason I usually have a soft spot for stocks in the financial sector.  At least in this case there are many ratings firms that agree, this one is a "buy".  Happy investing, and good luck.

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