It is now possible to invest in Ferrari in pesos and from Argentina. The National Securities Commission (CNV) approved last week the issuance of 17 new Argentine Certificates of Deposits, better known as Cedearswhich may begin to be negotiated in the first days of April.
From that day on, mirror shares of Ferrari with the sticker RACE. The manufacturer of sports and luxury racing cars posted a record net profit of €1,257 million last year. 34% more than in 2022.
Cedears: which are the other 16 companies that are beginning to be listed on the local stock market
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What are Cedears?
The cedars They are one of the instruments most used by investors for portfolio dollarization. They are papers that follow quotes of foreign companies in global markets and that are subscribed in pesos – also in Dollars- but the fluctuations of the dollar Cash with Settlement (CCL). The costs are the same as trading shares in the local market and an account abroad is not needed.
These are instruments that are operated locally and represent shares listed on foreign markets, such as the NYSE, Nasdaq, FTSE or the Frankfurt Stock Exchange, among others, and there are more than 200 available for investment.
The dividend issue also weighs when choosing the company. They are charged in dollars each time you pay abroad in the corresponding proportion according to the Cedears held in the wallet. Besides, Being tied to the CCL, it is a good safeguard against jumps in the exchange rate.
Each Cedar has a “conversion ratio”: that is, an equivalence between local roles and outside action. For example, at Apple it is 10 to 1; That is to say, you have to have 10 local Apple shares if you want to convert it into an American stock. At Amazon it is 72 to 1, at Microsoft 5 to 1.
Bolsas y Mercados Argentinos (BYMA) established that “Cedear’s minimum trading unit will be equivalent to V$N 1 (nominal value one).” That is, investors can enter from lower amounts and operate with multiples of 1. In short, it is not necessary to buy a complete share of the companies, but rather a fraction can be purchased.
How to invest in Cedears
To invest in a Cedear it is necessary have an active client account that allows operating in the capital market. It is possible to add one to the one we already have in a bank or create a new one through a brokerage company, as long as it is officially listed on the market.
For Christian Reos, Research Manager at Allaria Ledesma, he believes that using Cedear allows “exposure to regions that are totally different from the Argentine economy” and highlights that “in this way a small investor can invest and diversify his portfolio.” as a great one would do.” “The attractiveness of Cedear is that with pesos you can invest in world-class companies and are protected by the dollar,” remarks Paulino Seoane, Mr. Sales & Trader at Balanz.
When choosing a Cedear lThe decision involves, as with any action, detecting which sectors are promising based on global variables and the country in which the investment is made.. When choosing a Cedear, the decision involves, as with any action, detecting which sectors are promising based on global variables and the country in which the investment is made.
On the other hand, it is important to take into account the evolution of the exchange rate, because this investment will imply a way to hedge in hard currency against exchange rate risk, which is high in our country.
Source: Ambito
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