Economy Blog

“Even with their economy cooling, Chile still has a hotter economy than we do,” Jim Cramer told fans of his “Mad Money” TV show Thursday. Cramer pointed out that even with a slowing economy, Chile still grew its GDP by 3.5% in 2007. He explained that this Latin American gem will continue to boom as China grows because nearly one-third of the global copper production comes out of Chile. Cramer advised investors to buy shares of Banco Santander (SAN). He said SAN has one of the highest credit ratings of any South American company, and is the largest, best-run and most profitable of all the Chilean banks. He mentioned that money managers in the U.S. like to buy the stock when they want to have some exposure to Chile. Santander grew assets by a whopping 23% in 2007 and reported a 25% return on equity. “You won’t find this growth in any U.S. bank,” Cramer said. Shares of this red hot bank have outperformed U.S. peers since Cramer last recommended it on Oct. 11, 2007 - SAN registered returns of 20% from his call, while Washington Mutual (WM) fell 70% during the same period, Citigroup (C) plunged 44%, and Wachovia slipped 44%. Cramer also likes SAN because due to heavy government regulation, the top five banks in the country control 80% of the financial market. Lastly, Cramer loves the 4.5% dividend yield and shares trade at just 11 times earnings, with a 13% income growth rate.
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Fuente Original

“Even with their economy cooling, Chile still has a hotter economy than we do,” Jim Cramer told fans of his “Mad Money” TV show Thursday. Cramer pointed out that even with a slowing economy, Chile is still grew its GDP by 3.5% in 2007. He explained that this Latin American gem will continue to boom as China grows because nearly one-third of the global copper production comes out of Chile. Cramer advised investors to buy shares of Banco Santander (SAN). He said SAN has one of the highest credit ratings of any South American company, and is the largest, best-run and most profitable of all the Chilean banks. He mentioned that money managers in the U.S. like to buy the stock when they want to have some exposure to Chile. Santander grew assets by a whopping 23% in 2007 and reported a 25% return on equity. “You won’t find this growth in any U.S. bank,” Cramer said. Shares of this red hot bank have outperformed U.S. peers since Cramer last recommended it on Oct. 11, 2007 - SAN registered returns of 20% from his call, while Washington Mutual (WM) fell 70% during the same period, Citigroup (C) plunged 44%, and Wachovia slipped 44%. Cramer also likes SAN because due to heavy Chilean regulation, the top five banks in the country control 80% of the financial market. Lastly, Cramer loves the 4.5% dividend yield and shares trade at just 11 times earnings, with a 13% income growth rate.
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Fuente Original

“Even with their economy cooling, Chile still has a hotter economy than we do,” Jim Cramer told fans of his “Mad Money” TV show Thursday. Cramer pointed out that even with a slowing economy, Chile is still grew its GDP by 3.5% in 2007. He explained that this Latin American gem will continue to boom as China grows because nearly one-third of the global copper production comes out of Chile.
…
Fuente Original