I believe VCO, which is a nice company was recently delisted which shows another risk of investing in such stocks but if you invest in the business that is not such a worry, you get the value of the stock at the average 3 months price before the delisting announcement.
So, this is just an overview that I do on many markets, it has been compiled by David Mostl, my intern, and some things have been added by me.
Something very important to note is the tax on Chilean dividend distributions that varies on a personal level but can go up to 35% which is something to keep in mind. Here is the video overview:
A detailed analysis of EOCC:
Banking sector: difficult to see through/understanding the companies. Dependent on an economy growth to see an increase in loans.
Beverage sector: solid business, relative stable, but do we get value for the price?
Utilities: interesting valuation, new projects are where new value can come from, potential as more electricity will be consumed
GPRK: interesting company, to get exposure to the oil price; strong cashflow
LTM: many risks, cyclical, dependent on a low oil price
SQM: lithium gets/is very important for todays life, also fertilizers. Enough value for the price?
I have also looked at some stock traded in Chile but high on the ETF ownership list. Unfortunately, all have a high PE ratio and not what you’d expect form an emerging market.
Chile is interesting but we can find better opportunities, better risk reward opportunities around the world. Chile is stable and good, that comes always with a price.
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