Colombia: More Than Drugs These Days
- Posted by Leigh Drogen
- on May 30th, 2011
The best trading opportunities are found when not enough people are paying attention to an asset, or in some cases a whole asset class. Even better opportunities are found when reality deviates significantly from the prevailing view.
Right here, right now, Colombia is experiencing both. No one is talking about what is taking place in Colombia, and if they are, it’s an outdated view.
While investors are pouring money into Brazil at a breakneck pace, and to some extent focusing on Argentina, Colombia is still seen by both the public and institutional investors as persona non grata when it comes to their portfolios. They better wake up, quickly, because Colombia is about to explode.
Those with a voice on Colombia are the ones wealthy enough to leave in the 90′s when the place was a disaster, geo-politically and economically. They haven’t been back, and have no view the progress this country has made. Those on the ground in Colombia, those who have taken a chance on a development story no one is talking about, aren’t saying much, yet. They are quietly laying the political, social, and economic groundwork for the next big story in the western hemisphere.
I’ve been lucky to get a deep view on what is taking place down there, from someone right in the middle of it all. Last year I also had the chance to travel down to Bogotá and Cartagena for a little over a week.
What you need to pay attention to specifically here is the real estate market. It’s still the wild wild west down there, and because there are so few institutional investors playing, it’s extremely inefficient. There is only one publicly traded REIT, it is controlled by the most powerful family in Colombia, the Santo Domingos. It does not yet have an ADR.
Partnerships are in the process of being formed and money is about to be poured into this market. Banco Colombia, ADR ticker symbol CIB is the best public way to play this trend, they will have a large stake in Colombia’s success.
Colombia is where Costa Rica was in the early 90′s. The US has a free trade pact with Colombia in the Senate. It’s currently stalled by the Obama administration due to their desire for increased protectionist measures. It’ll get through eventually, and people will begin to pay attention.
Take a look at the charts of CIB and EC, the latter being the Colombian energy company. Both look ready to explode.
It’s time guys, if you’re looking for the next Brazil, the next Costa Rica, now is the time to invest in Colombia. The next 4-5 years will be the entry point for the next 25.
Don’t sleep on Colombia, more than just cocaine is being blown down there right now.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see the Disclaimer page for a full disclaimer.
blog comments powered by Disqus
Leigh Drogen is the founder and chief investment officer of Surfview Capital, LLC, a New York based investment management firm employing an intermediate term long/short momentum strategy. More »
- My 10 Stocks and Big Trends for 2014
- Please Just Stop Building These Apps
- Finance People Don’t Have Pseudonyms, and Other Musings On Identity In Social Finance
- Estimize Named 1 of Forbes 9 Hottest Startups of 2013
- Here’s How We Posted a 77.4% Gain With 2013 Picks and Trends
- Why You Are Completely Wrong About Forward Guidance Being More Important Than Results
- Estimize Featured In CNN Money’s Top 15 Financial Apps
- Why I Owe Mark Zuckerberg An Apology
- SunTrust Joins The Estimize Platform, All 299 Other Sell Side Firms to Follow
- The Real Problem With SigFig’s $10/Month Portfolio For Everyone
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011