YPF Nationalized

[davonz]

I have to disagree on this point. I'm a kiwi and work for a multinational NZ company that has entered the Argentine market and is looking to investment in what is looking to be a very lucrative market.

I am corrected then... what multinational is that ?

 

[NomadInBA]

I am corrected then... what multinational is that ?

Nothing personal but I wouldn't want to put the name out there on a public forum. Anyway, my point is that there are companies that view the Argentine market as a risk worth taking even in this climate.

 

[nicoenarg]

Nothing personal but I wouldn't want to put the name out there on a public forum. Anyway, my point is that there are companies that view the Argentine market as a risk worth taking even in this climate.

Unless the industry your company deals with was recently nationalized or a major company gobbled up by the government, I can understand why they are still comfortable.

It depends on the industry. I can see a lot of the local market (having nothing to do with outside) being somewhat lucrative.

I don't see many major oil firms (going back to the context of the thread) lining up to reap the profits just yet.

 

[davonz]

Nothing personal but I wouldn't want to put the name out there on a public forum. Anyway, my point is that there are companies that view the Argentine market as a risk worth taking even in this climate.

I can understand not wanting to say, i was interested to know what field you operate in more than anything.

And i also understand there is alot of potential here to make money, especially agri related fields.

And if you are an importer of goods and services, it would have been easy up until the import restrictions where put on.

If i was doing business here my biggest concert at the moment would be getting profits or money to cover external costs out.

 

[willwright]

I think the answer to all these questions is quite easy. Yes Argentina can hire help and expertise in running the business(into the ground is what will probably happen). The real problem is who is going to provide the money to develop the existing resources. If reports are accurate that development would require $25 billion a year for 10 years or so. The government doesn't have these kind of resources and no company is going to pony up give the current climate. From the tone of statements its clear the government doesn't plan on paying fair compensation for YPF. Who would invest a quarter of trillion dollars with the likely event that you will simply be robbed of the profits and your investment confiscated in the end. What's really going on is that this is just another cash box they can rob to keep their unsustainable economic policies going for a bit longer. Sooner or later they will run out of cash boxes to rob and the whole thing will come crashing down. No doubt a future government will re-privatize the company because that's the only way these resources will ever be developed. Once its built up to something that's making money and valuable another future government will rob it again. My wife has a relative in another country in South America who has been in business many years. He has one business that has been expropriated from him not once but twice.

 

[camberiu]

Who would invest a quarter of trillion dollars with the likely event that you will simply be robbed of the profits and your investment confiscated in the end.

Petrobras could. It is not a for-profit company and is often used as a political tool by its main shareholder, the Brazilian government.

Since Dilma is very sympathetic to the current Argentinian administration, I would not be shocked if she simply issued a directive for Petrobras to help YPF with know-how and cash. It is just the Brazilian tax payer money after all, so who gives a shit? Certainly not the Brazilian government.

 

[surfing]

Petrobras could. It is not a for-profit company and is often used as a political tool by its main shareholder, the Brazilian government.

Since Dilma is very sympathetic to the current Argentinian administration, I would not be shocked if she simply issued a directive for Petrobras to help YPF with know-how and cash. It is just the Brazilian tax payer money after all, so who gives a shit? Certainly not the Brazilian government.

I believe relations between the two countries are a lot more strained than you seem to think.

 

[camberiu]

I believe relations between the two countries are a lot more strained than you seem to think.

I hope, for the good of the Brazilian tax payers, that you are right. But as a Brazilian myself, I do not get that impression at all.

 

[camberiu]

I believe relations between the two countries are a lot more strained than you seem to think.

Based on the news, bellow, it does not look very strained to me at all.

http://goo.gl/Gs2Ru

Argentina and Brazil closer in defence issues and in support of Malvinas claim

“The relation with Argentina is the most strategic of all our relations” pointed out Minister Amorim. “A strategic alliance based on common shared history sealed in its moment by the initiative from former president Nestor Kirchner to create Unasur”.

 

[YanquiGallego]

Depends on the business you are in, like with anything, as the co-owner of a small company that does business in all Latam, I still see BA as a hot market, albeit an unstable one especially since my product targets a more affluent demographic which one day could have disposable income and the next month might not. Even the Puerto Madero restaurants are looking empty these days.

It's a tough ballpark but the sky isn't falling (not yet anyway), all one has to do is take a look at recent issues of FORBES ARGENTINA and you will see that there are still some movers and shakers here doing rather important things. The second to last issue was their 35 under 35 issue and it was quite refreshing to see that there are still some young entrepreneurs making lemonade out of lemons.

However in my personal case my saving grace is very little overhead and the fact that our margins are high enough that I dont NEED for thousands of people in BA to buy into my product line in order to do ¨OK¨ in the BA market necessarily, but I do feel it important to have a presense in the market, and I feel that most companies are also in the same thought process of maintaining a presense.