Latam stocks now seen undervalued but caution urged
biz.yahoo.com
''By definition, everything is undervalued. But you have to ask how long this will go on,'' said fund manager Ricardo Daud at Argentina's Bansud bank.
''The truth is that prices are very appealing,'' said Argentine trader Horacio Alvarez at the brokerage that bears his name.
But while many stocks are trading far below their worth, analysts are far from urging clients to rush out in an unfettered bargain-buying spree.
The first problem, analysts said, is that no one knows how long the financial turmoil in Asia and Russia will last.
However, analysts agree the best defense for the current market turbulence is to look for shares of companies whose sales are made mostly inside their countries and do not depend on more uncertain export markets.
Latin America's telecommunications giants, like Telmex (TELMEXL.MX), Telebras (TELB4.SA), and Argentina's Telefonica (TEA2.BA), are cautious bets, as are utilities for their reliance on domestic sales, analysts said.
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