This Strong Bullish Gas Stock Is Key to Argentina's Future

Here's why it pays to look abroad… Published By Money & Markets, LLC. May 23, 2024 Published By Money & Markets, LLC. May 23, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( This Strong Bullish Gas Stock Is Key to Argentina's Future Money & Markets Daily, Say what you might about new Argentina President Javier Milei, but he and his government have several critical tasks at hand: - Tame inflation of over 250%. - Reduce the federal deficit. - Reduce the country’s 57% poverty rate. The problem is that solving one issue affects the others. Milei’s government has launched an aggressive austerity campaign to help curb inflation. Those efforts include cutting government subsidies, closing state-run institutions and auditing welfare programs. Subsidies and public programs help impoverished people afford to buy goods. Cutting those subsidies reduces the federal deficit, but it also cuts low-income households off from the help they need. Earlier this year, Argentina announced a plan to increase its natural gas rates by 100% to reduce some of those government subsidies for its booming gas and energy sectors. The idea is that a rate increase will help Argentina’s natural gas companies invest more in boosting production. For one company, the plan is working. --------------------------------------------------------------- [Turn Your Images On]( [Silicon Valley Billionaires Are Quietly Buying Into What We Call the “Imperium” Boom]( See why Bill Gates, Mark Zuckerberg and Peter Thiel are making huge bets on this breakthrough now. [Details here.]( --------------------------------------------------------------- Natural Gas Is Big Business in Argentina In 2021, natural gas generated 93.3 terawatt-hours of electricity in Argentina — or roughly 63% of the nation's total power generation. The following year, that dipped as renewables like wind and solar gained traction: [Turn Your Images On] Despite that reduction, the trend remains the same. Natural gas still rules the roost when it comes to electricity generation in Argentina. One reason gas has been king is price. In January 2024, the Argentine government said 82.5% of customers pay just $0.70 per metric million British thermal units (MMBtu). The remaining 17.5% pay more than 5X that at $4/MMBtu. The lower prices paid by most Argentinians have left the country's natural gas industry underfinanced, slowing down projects to expand capacity in the large shale deposits of Vaca Muerta. The latest government measures to trim subsidies and increase natural gas costs should increase company profits and allow for more expansion. One natural gas company is already taking advantage of these austerity measures. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [Is this proof that cryptos are working as intended?]( After a series of banking collapses hit mainstream media, the surge in bitcoin's (BTC) price has raised eyebrows. In fact, many are recognizing BTC as one solution with its 70% growth rate seen so far this year; yet another crypto could have much more potential and disrupt global finance within our lifetime! With investment already pouring in from PayPal and Square plus Mark Cuban and billionaires Elon Musk and Ray Dalio on board too ... there may be serious opportunities out there today if you know where to look — [learn how you can get started with only $20 here now before it's too late!]( --------------------------------------------------------------- The Bullish Play in Argentina’s Natural Gas Sector Transportadora De Gas Del Sur TGS (NYSE: TGS) is an Argentinian company that produces, transports and sells natural gas in South America. Pro tip: I told you [about TGS in September 2022]( even before Milei took office. Since then, the stock has risen more than 180%. Business was good even before the government announced new austerity measures, and it’s been even better since… In the first quarter of 2024, TGS reported a 6% jump in total revenue year over year and a 19.5% increase in its operating profit. That's triggered a solid rally since March: [Turn Your Images On] From its recent low, TGS stock has gained more than 60% to close in on a new 52-week high. Looking at its Green Zone Power Ratings, it looks even better than it did back in 2022: [Turn Your Images On] TGS rates 96 out of 100 on Adam's system — putting it in the top 4% of all stocks we rate. The stock scores a 90 on Momentum (it was 89 back in 2022) and 86 on Growth (a huge improvement from 58 in 2022). TGS is more volatile due in part to the political shakeup, and its surge in price has lowered the Value factor rating from 99 to 70. Bottom line: TGS is just as good a stock as it was when I wrote about it two years ago. Heck, it might be even better. The new austerity measures in Argentina, while a tough pill to swallow for now, are providing massive growth in revenue and profits for TGS. With these policy changes in place — and the prospect of even more — TGS should have a bright future. Pair that with "Strong Bullish" Green Zone Power Ratings, and this is a stock to consider for your portfolio. Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- [Turn Your Images On] Supply Chain Pressure Adds to Fed's Worries Evidence continues to mount that the Federal Reserve will struggle to cut interest rates later this year. Post-pandemic inflation has several causes, but one that gets cited often is the unprecedented supply chain disruption. In the auto industry, for example, manufacturers canceled orders as sales dipped during lockdowns. Stimulus checks quickly boosted demand, but manufacturers faced months of delays because of impulsive decisions. As inflation soared, the Fed developed the [Global Supply Chain Index (GSCPI)]( to monitor this trend. Positive values in the index, shown as the blue line in the chart below, indicate potential problems in the supply chain. With manufacturers facing potential bottlenecks, the fight against inflation may be stalling, and a rate cut may have to wait until 2025. — Mike Carr, Chief Market Technician, Money & Markets [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [A TREASURE TROVE OF UNTAPPED INVESTMENT IDEAS]( - [MEME STOCK INVESTORS MISSED THIS CRITICAL FACTOR]( - [THIS IS THE NEW NORMAL]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. 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