In March the new cedars were authorized by the Authority National Value Commission (CNV), which are added to the 294 already existing. It is worth mentioning that cedars represent shares of international companies listed outside Argentina. This feature makes them a valuable tool for accessing international markets, allowing you to operate from the country.
The new instruments that have started trading are Advance Auto Parts, Lithium Americas, Marvell Technology, McEwen Mining, Nu Holdings, PagSeguro, Palantir Technologies, Shapeways Holdings, StoneCo and SunCar Technology Group.
Next, we will introduce each of the new instruments that have started trading in the local market:
Advance Auto Parts Inc: Company providing replacement parts, accessories and batteries for cars, trucks and heavy-duty vehicles, with stores in the United States, Puerto Rico, the US Virgin Islands and Canada. It was founded in 1929 and is headquartered in Raleigh, North Carolina. Its products include battery accessories, belts and hoses, brakes and brake pads, chassis and air conditioning parts, clutches and drive shafts, among others. It saw the dollar decline 58% in 2023, although it managed to recover this year with a cumulative gain of 44%.
Lithium Americas Corp: Canadian company focused on developing lithium projects, with interests in the Thacker Pass project in Nevada and exploration properties in the United States and Canada. The company is dedicated to developing lithium projects that contribute to the supply chain and the global transition to cleaner energy. It was incorporated in 2023 and is headquartered in Vancouver, Canada. From October 2023 to the end of that year, the stock fell 38%, but has recovered this year with a 7% increase.
Marvell Technology, Inc.: American company dedicated to the development of semiconductors and related technology, with recent acquisitions and planned expansion in India. In April 2021, Marvell completed the acquisition of Inphi Corporation. In September 2023, Marvell Technologies acquired an expansion deal in Pune, India. This generated a positive effect last year with a 62% increase in dollar terms and this trend continues with a 12.8% increase this year.
McEwen Mining Inc: company dedicated to the exploration, development and production of gold, silver and copper in the United States, Canada, Mexico and Argentina, with interests in several mines and exploration properties. It primarily owns a 100% interest in the gold bullion mine in Eureka County, Nevada. It also owns a 49% stake in the San José mine, located in Argentina. It saw a 23% increase in its performance in 2023, thanks to the recovery of its operations and the price of the precious metals it produces. In 2024 the company continues its positive trend with an increase of 21.2%.
Nu Holdings Ltd: Technology company offering a digital banking platform with financial products for spending, saving, investing, lending and protection. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a personalized line of credit or instantly via mobile, earning loyalty points and rewards on transactions. It recorded a significant appreciation of 104.7% in 2023, reflecting an increase in the adoption of digital banking services and an expansion of its user base. In 2024, Nu Holdings Ltd maintains a positive trajectory with an increase in its performance of 48%, indicating that the company continues to capitalize on the trend towards financial digitalization and consolidate its market presence.
PagSeguro: Brazilian financial services and digital payments company, offering payment processing software and point-of-sale terminals. Founded in 2006, the company primarily provides payment processing software for e-commerce websites and mobile applications, as well as point-of-sale terminals. It has been listed on the New York Stock Exchange since January 2018. It recorded growth of 42.7% in 2023, driven by increased adoption of digital payment solutions and the expansion of its customer base. In 2024, performance fell to 16%, highlighting the consolidation of its market after a period of accelerated growth.
Palantir Technologies Inc: American company specializing in software for big data analysis, founded in 2003. It stands out with an impressive performance in 2023 with an increase of 167.4%. This can be attributed to the expansion of its services and increased demand for data analytics across various industries. In 2024, the company shows a good return of 45.2%, indicating that it continues to benefit from its strategic position in the technology sector.
Shapeways Holdings, Inc: Facilitates the design, production and sale of 3D printed products, with a digital manufacturing platform and printing services. It also provides additive manufacturing, rapid prototyping and design services; and traditional manufacturing services, including injection molding, sheet metal, vacuum and urethane casting, CNC machining and machine tooling. In 2023 it recorded a decline of 42.5%. It saw a further decline of 24.4% in 2024, which could indicate that it is still adjusting its business model or is facing strong competition.
Stone Co Ltd: Provider of financial technology and software solutions, with a cloud platform for financial services and software. This way, customers can connect, get paid and grow their business. Furthermore, other financial services include payment solutions, digital banking, credit and insurance solutions. It had a banner 2023 with 91% growth, likely driven by the adoption of its financial services platforms. However, in 2024, the company sees a decline of 7%, which could suggest a correction after a period of accelerated expansion or changes in the competitive environment.
SunCar Technology Group Inc: Provides automotive after-sales and online insurance brokerage services in China, with three distinct business segments: insurance, automotive after-sales business and technology business. The company showed a decline of 20.3% in 2023 and continued a negative trend in 2024 with a decline of 13.9%.
Considering the companies mentioned and the range of products and services offered, the most notable opportunities lie in Lithium Americas, Marvell Technology and McEwen Mining.
US lithium has significant appreciation potential of up to 74% this year, with its price expected to rise from $6.2 to $10.9.
Marvell Technology also shows promise, predicting a possible 29% increase, which would raise its price from $68 to $88.
Finally, McEwen Mining offers encouraging prospects with an estimated potential growth of 48%, which could translate into an increase in its market value from $8.70 to $13.00.
Furthermore, another important aspect is that both McEwen Mining Inc and Marvell Technology Inc have Forward P/E values, which is a metric that compares the current price of a stock with its future earnings, of 46 and 9 respectively, which are lower compared to the industry average, which is 55 for the mining company and 80 for the semiconductor company. This reinforces the fact that these stocks are undervalued.
For Lithium Americas it should be noted that despite the recent decline in the price of lithium due to increased supply, the closure of several mines around the world would put pressure on the price. Additionally, the prospect of interest rate cuts later in the year creates an even brighter outlook amid the enthusiasm for green energy and electric vehicles (EVs) that use green energy. This makes now an ideal time for long-term investors to dive into lithium stocks.
In conclusion, the establishment of new cedars offers the possibility of accessing a wider range of companies listed on international markets. It can be a smart strategy to protect yourself from local economic uncertainty while participating in the growth of international companies.
Source: Clarin
