Penny Stock Pavilion - Part 1 - IRSA PROPIEDADES COMERCIALES
In this 11 part series, I will be covering one penny stock from each sector that I feel has potential to grow in the next few years. The first company I will cover is IRSA PROPIEDADES COMERCIALES or IRCP. This stock would fall under the real estate sector.
IRSA Propiedades Comerciales S.A. operates as an investment arm of IRSA Inversiones y Representaciones S.A. Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. As of June 30, 2007, it owned and operated ten shopping centers covering a total of 264,995 square meters in Argentina, including six in the Buenos Aires metropolitan area and four in the provinces of Cordoba, Mendoza, Salta, and Santa Fe; and a condominium called Torres de Abasto located in front of the Abasto Shopping Center in Buenos Aires. The company offers leases to retail tenants in its ten shopping centers; administration and maintenance of common areas; administration of contributions made by tenants to finance promotional efforts for the shopping centers; and parking lot services for visitors. The company also offers credit card consumer finance service, through the issuance of its Tarjeta Shopping and Tarjeta Shopping Metroshop credit cards, for consumers at shopping centers, hypermarkets, and street stores. It also engages in the development and sale of residential properties, and acquisition and sale of undeveloped parcels of land for future development. In addition, it engages in the development of condominiums associated with its shopping centers. The company was founded in 1889 and is headquartered in Buenos Aires, Argentina.
With this diversified product base of residential/commercial, credit financing, and land development and a long lasting legacy dating back to 1889, this legacy is a true winner in my book. With inflation roaring at around 47.9%* in Argentina, the real estate debt owed by IRCP is quickly being eroded away. As with the raised interest rates to combat the inflation, IRCP will benefit from the increased revenue from their credit financing division. And furthermore, land/real estate has traditionally been considered as one of the best hedges against inflation. Another great benefit is their annual dividend yield, which most recently was around 34.7%.
As for institutional investment, 683 Capital Management LLC is the top holder of IRCP with a position of > 2.6M shares valued around > $6.5M as of 12/31/2021. Institutions currently hold about 3.63% of the company. It appears that there has been some recent selling by institutional investors with a -14% change in ownership in the previous quarter.
In the past 52 weeks, IRCP has grown roughly 18.84% compared to the industry average of -10.47%. You can see their current financial statement below:
(In Millions)
-Balance Sheet -
Total Assets: 1,891
Total Liabilities: 1,046
Debt to Assets: 55.3%
-Income Statement-
Net Sales: 39
Gross Profit: 26
Profit Margin: 64.93%
-Cash Flow-
Operating: 13
Net cash flow: 1
So as you can see, IRCP is profitable in all instances with a very good debt to asset ratio of only 55.3%. Couple that with a MASSIVE ascending channel on the month chart and you have a stock that's poised to significantly grow over the next few years. This is definitely going to catch the eye of many institutional investors as we continue to see this stock run. If you would like to learn more about this company then be sure to check out their website: www.irsa.com.ar/
If you enjoyed this content then please make sure to leave a like, comment, and share on social media! It takes time to make these things you know.
#thedailyinvestor
Sources:
www.focus-economics..../argentina/inflation
IRSA Propiedades Comerciales S.A. operates as an investment arm of IRSA Inversiones y Representaciones S.A. Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. As of June 30, 2007, it owned and operated ten shopping centers covering a total of 264,995 square meters in Argentina, including six in the Buenos Aires metropolitan area and four in the provinces of Cordoba, Mendoza, Salta, and Santa Fe; and a condominium called Torres de Abasto located in front of the Abasto Shopping Center in Buenos Aires. The company offers leases to retail tenants in its ten shopping centers; administration and maintenance of common areas; administration of contributions made by tenants to finance promotional efforts for the shopping centers; and parking lot services for visitors. The company also offers credit card consumer finance service, through the issuance of its Tarjeta Shopping and Tarjeta Shopping Metroshop credit cards, for consumers at shopping centers, hypermarkets, and street stores. It also engages in the development and sale of residential properties, and acquisition and sale of undeveloped parcels of land for future development. In addition, it engages in the development of condominiums associated with its shopping centers. The company was founded in 1889 and is headquartered in Buenos Aires, Argentina.
With this diversified product base of residential/commercial, credit financing, and land development and a long lasting legacy dating back to 1889, this legacy is a true winner in my book. With inflation roaring at around 47.9%* in Argentina, the real estate debt owed by IRCP is quickly being eroded away. As with the raised interest rates to combat the inflation, IRCP will benefit from the increased revenue from their credit financing division. And furthermore, land/real estate has traditionally been considered as one of the best hedges against inflation. Another great benefit is their annual dividend yield, which most recently was around 34.7%.
As for institutional investment, 683 Capital Management LLC is the top holder of IRCP with a position of > 2.6M shares valued around > $6.5M as of 12/31/2021. Institutions currently hold about 3.63% of the company. It appears that there has been some recent selling by institutional investors with a -14% change in ownership in the previous quarter.
In the past 52 weeks, IRCP has grown roughly 18.84% compared to the industry average of -10.47%. You can see their current financial statement below:
(In Millions)
-Balance Sheet -
Total Assets: 1,891
Total Liabilities: 1,046
Debt to Assets: 55.3%
-Income Statement-
Net Sales: 39
Gross Profit: 26
Profit Margin: 64.93%
-Cash Flow-
Operating: 13
Net cash flow: 1
So as you can see, IRCP is profitable in all instances with a very good debt to asset ratio of only 55.3%. Couple that with a MASSIVE ascending channel on the month chart and you have a stock that's poised to significantly grow over the next few years. This is definitely going to catch the eye of many institutional investors as we continue to see this stock run. If you would like to learn more about this company then be sure to check out their website: www.irsa.com.ar/
If you enjoyed this content then please make sure to leave a like, comment, and share on social media! It takes time to make these things you know.
#thedailyinvestor
Sources:
www.focus-economics..../argentina/inflation