Seeking Alpha: Cresud Is Confounding, But Trading Much Too Far Below Fair Value

Having given overviews of South American agricultural companies SLC Agricola (SLCJY.PK), Adecoagro (AGRO), and BrasilAgro (LND), I close the tour with Argentina's Cresud (CRESY). I'd like to say that I left the best for last, and maybe I have, but I think it's closer to the mark to say that I've left the most confounding one for last.

Make no mistake, Cresud has a lot of worthwhile assets, including productive farmland in four South American countries, a controlling stake in a significant Argentine real estate developer, and a major stake in BrasilAgro. At the same time, though, Argentina is going through another bout of significant political and economic turbulence, and I don't think anybody can say that means for agricultural exports out of Argentina, land values within the country, and/or the company's ability to pay cash dividends to foreign shareholders.

Assuming that nothing dramatic changes regarding the operating framework for the company in Argentina (and Brazil) and that land values stay strong, Cresud could well be the cheapest of the four companies I've surveyed. At a minimum, it's definitely the most diverse collection of assets.

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Cresud Is Confounding, But Trading Much Too Far Below Fair Value