Weird Weather, and a Stock a World Away

[mlk_man]

Weird Weather, and a Stock a World Away

William Buechler
Barclay Partners Asset Management

brutal drought in Australia presents an intriguing buying opportunity in Argentina. That's right -- Argentina, says William Buechler of Barclay Partners Asset Management in La Jolla, California. As Bill explains it, the drought has damaged Australia's wheat crop, which has boosted worldwide wheat prices. At the same time, the increasing use of ethanol fuel in the US has elevated corn prices. A company positioned to take advantage of both situations is Cresud Inc. (CRESY), a large grain and cattle producer in Argentina. With a grain bull market, Cresud will be able to sell its products for significantly higher prices. You can't find any other publicly traded company that provides this particular commodities play. Buechler believes that the stock, now trading at around $17.50 as an ADR on the Nasdaq, will move into the high $20s over the next year.