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Author: TMFTheSnake Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 897  
Subject: Re: FY 2011 results out Date: 10/3/2011 11:33 AM
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kid

That was tactful. :)

I can share that I doubt the drop will stop in the next week because a lot of the fear I see going into the drop has to do with global slowdown risk (probably not disappearing any time soon) and political risk.

With Cristina Fernandez looking quite likely to win re-election at the end of Oct, and with enough of a populist mandate to continue her odd form of economic planning, people are afraid.

Argentina has already made noise about limiting foriegn ownership of farmland (Brazil has already put restrictions in place), which coud hurt CRESY depending on how strict they are.

Additionally, Fernandez has put restrictions on ag exports in order to reduce domestic inflation, which hurts the earning power of Argentine farmers. Beef production in the country has declined in recent years for this very reason.

With this type of overhang, CRESY is a risky proposition, and we've all seen that trying to predict or betting against a government's silliness can be dangerous to investors.
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