Proof that Colombia is changing for the better..................

Saltador says on Aug 29, 2005, 07:48:

Colombia stocks I bought some BanColombia stock 3 or 4 weeks ago when I saw it profiled on CNBC by Jim Kramer. You also might be interested in America Movil, (AMX.N) which recently bought Comcel. I think it's up 50% since I bought it 6 months ago.
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh28689_2005-08-26_18-43-28_n26604263_newsml

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tomtom33 says on Aug 29, 2005, 09:36:

Caveat I like looking at individual stocks, too. However, it should be noted that 99% of small investors would be better off owning a broadly diversified stock index fund and should not buy individual stocks.

Of course people should never gamble in casinos, either.

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Andy-NY says on Aug 29, 2005, 11:05:

I'm not pushing stocks here............ I'm not recommending the stock. I'm just showing people that a Colombian company's stock was added to my newsletter.

Andrew-NY

Andrew-NY

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Saltador says on Aug 29, 2005, 13:02:

Just adding... ...my two cents to the topic, not giving investment advice.
Although I did stay at a Holiday Inn Express last night...

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BAQ says on Aug 29, 2005, 16:05:

BanColombia Bancolombia is one of only THREE "International" banks in colombia. the other two are CitiBank and Bank de Bogota. It isn;t suprising they are making huge profits, when you consider the interest rate for a credit card is about 25% and a new car loan in right at 20%. Every time you withdraw money from your account, they charge a small %, it's a fee for "Movement of money". I have no idea what kind of interest rates they are charging for home and commercial sales.

Semper Fidelis !

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viewpoint says on Aug 29, 2005, 16:53:

ANDY-NY "Colombia is becoming a much better place to do business"

Well I am not sure how you could have arrived at this conclusion.

Yes there has been many sucessfull Colombian borne company successes.

Outside that, Colombia is a graveyard of foreign (outside Latin America) investments with few success stories outside natural resouce development (mainly oil & coal). Go look at the unpaid creditors of the central governments Colombia Telecom. Even in the engergy and communications sectors foreign investors have suffered big losses.

The recently announced "proposed" acquisition of 50% of Colombia Telecom by Carlos Slim is an example of how badly mismanaged things can get in Colombia and WHO pays the price. The newco will only receive transfer of the assets (free of liens) after 15 yearly payments of US$174,000,000 totaling 2.610 US billion dollars of unpaid creditor and pension debt is paid to the oldco creditors.

Even the central government operating a self created (almost) monopoly couldn't do it profitably.

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ws244 says on Aug 29, 2005, 17:08:

baq 12% at 12 years on a home loan i believe. There are only so many Colombians who can afford the prices of new apartments in this building boom, a boom which can not last. People forget they do not have the normal financing nor the creative financing as up here which is helping to substain our boom.

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viewpoint says on Aug 29, 2005, 17:10:

TINTO Carlos Slim doesn't make many mistakes (damn few). He purchased equity in Tricom in the DR and that was a mistake but I don't know of many others. Andy NY makes mention of Siemens investing in Colombia but they lost 100s of millions financing their communications hardware to telecoms in Colombia like Transtel, SA, Colombia Telecom and others.

Intergen (formally Shell Oil & Bechtel) went home licking their wounds with empty pockets promising never to return.

The only way that Carlos Slims investment will yield fruit is if the Colombian government extends the telecom concessions beyond 2006 prohibiting VOIP to terminate into a gateway within Colombia not allowing VOIP to be marketed (by others) as data communications and not telephone service (as in the USA). You know that they will do that and who pays the price (the poor Colombians).

Most of the telecommuication tariff structure is just another tax upon Colombians. Look at Panama with US .05 cents/minute long distance charges via VOIP and Colombia allowing a 005, 007 and 009 monopoly to rape their citizens with the central government sucking back the lions share of the telecom revenue with rates averaging US$ .50 cents/minute with one hand while holding off the commerical deployment of VOIP (with the other hand) which would bring inexpensive long distance telephone calls to 40,000,000 people.

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cam0940 says on Aug 29, 2005, 17:11:

ws244 You mentioned a building boom. What locales specifically are you referring to?

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tomtom33 says on Aug 29, 2005, 17:14:

Boom There is one helluva boom in Cartagena right now especially in Laguito, Boca Grande, Castillo Grande, and Crespo.

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cam0940 says on Aug 29, 2005, 17:18:

Thanks tomtom33 I saw some going up in the Spring this year. I see some very nice looking apartments in the $50K to $60K range in Boca Grande and El Laguito that are for sale now.

WS244, how would you go about establishing credit in Colombia? If I could come in with $25K cash, what would I do if I like an apartment listed at 155,000,000 pesos? How often do you pay association fees?

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tomtom33 says on Aug 29, 2005, 17:27:

Yup The guy I bought my apartment from is Juan Ventura at ittscol at hotmail.com.

You can see things at http://www.cartagenarealty.com/propiedades/propiedades.php?categoria=APARTMENTS.

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cam0940 says on Aug 29, 2005, 17:31:

Thanks again tomtom I'm going to poke around on this site a little bit.

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poco says on Aug 29, 2005, 22:02:

Another thought How many could afford an internet connection. Add that to the telephone charge and what about high speed. I have 56K that runs no more than 40K and many times 13K and is not reliable. DSL, cable not available.

Telecom is different today. They now offer rates of 800 pesos per minute at the "booths", the cheapest and most reliable connections available (NOW), down from 1000+ in a rural area.

Yes, this is bad, I can call Colombia on my cell phone for 400 pesos a minute (with plan) or .18 cents a minute. Some U.S. cards allow rates as low as 150 pesos.

Forgot to ask the cost but calling cards are available in Colombia.

Haven't studied Telecom problem or who owns it or finances but it seemed to work just like every other goverment monopoly a few years ago,,, bad and many phone centers were "closed".

Generally, paying taxes on long distance or international calls seems better than "taxing everyone". Reminds me of the toll booths on the highways, collect from the users.

This will work out,, it is not stoppable. Right now the sharp operators are using cell phones if land lines are more expensive.

If they are REALLY poor they don't have a phone.

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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viewpoint says on Aug 31, 2005, 05:22:

Encouraging News http://www.bnamericas.com/story.jsp?idioma=I§or=2¬icia=328397

Ministry sets LD liberalization for August 2007 - Colombia
Published: Tuesday, August 30, 2005 18:23 (GMT -0400)

Colombia's ministry of communications has signed a decree authorizing new long distance operators to seek licenses from August 1, 2007, the ministry said in a statement.

The date marks 10 years since the three incumbent operators - Telecom, Orbitel and ETB - obtained their licenses for US$150mn each. Newcomers will also be able to apply for 10-year renewable licenses, but with much more flexible contracts compared to those the three incumbents have.

The new licenses will not require operators to have a certain number of lines installed, nor accredit 400 million international LD minutes the year prior to applying.

Specific regulations must be drawn up by the regulator CRT, and the ministry plans to hire a consultancy to calculate how much new LD operators should pay for their licenses.

The three incumbents will also be able to apply for the modified licenses, and all will have to pay 5% of their revenues to Colombia's communications fund.

The regulations also obligate the three incumbents to make wholesale minutes available for resellers.

The aim is to provide more options to consumers and strengthen the long distance sector by increasing competition and allowing for implementation of new LD technologies such as VoIP, which up to now has had a low level of penetration in Colombia.

BNamericas.com

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Andy-NY says on Aug 31, 2005, 12:17:

Viewpoint,

You seem to be very intelligent. I think we met at Piasa29's gathering in Medellin on August 4th. I'm trying to remember who you are, but I'm 99% sure we met.

Andrew-NY

Andrew-NY

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aztec says on Aug 31, 2005, 12:34:

I have met him. He is very intelligent. He is a combination Trump and Hugh Hefner.

Surely hope this doesn't place his life in danger! In any case we need to protect his real identity!

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utopiacowboy says on Aug 31, 2005, 17:51:

I agree. I'd hate to see anything happen to him. He's one of the few sensible people on PBH.

Disclaimer: any comment I make is inane and is not to be taken seriously, and is so patently ridiculous that no one should take it seriously, even as an insult.

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Andy-NY says on Aug 31, 2005, 18:58:

fair enough. I did meet him and he was very nice. I didn't remember his handle on here, but I remember him very well.

Andrew-NY

Andrew-NY

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ColombiaBoard says on Aug 31, 2005, 19:05:

Free Trade Agreement As a side comment.... everybody is waiting for the outcome of the Free Trade Agreement negotiations with the USA. According to the government´s plan it should be signed by late November, after that we´ll see many new economic, trade and new possibilities for Colombia.
Most large companies are already doing strategic planning with the Free Trade agreement in mind. They know the big competitors are coming (although some are still afraid to come here....) and they´ll have some interesting opportunities in the US market. Some companies know they´ll be crushed by the competition.

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aztec says on Sep 1, 2005, 06:37:

ColombiaBoard, do you have any idea where we might see written materials concerning the Agreement being negotiated? Even a summary might provide a heads-up for some of us just now in the process of transition.

Thinking there my be changes in insurances of all type, tax reciprocity, lower import duties(auto's) others we have not even considered.

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aztec says on Sep 1, 2005, 07:11:

Trade Thanks. Checking now!

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aztec says on Sep 1, 2005, 07:37:

Free Trade Agreement negotiations ColombiaBoard, do you have any idea where we might see written materials concerning the Agreement being negotiated? Even a summary might provide a heads-up for some of us just now in the process of transition.

Thinking there my be changes in insurances of all type, tax reciprocity, lower import duties(auto's) others we have not even considered.

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ColombiaBoard says on Sep 1, 2005, 19:37:

FTA As Tinto righfully recommended check the sites of the organizations and publications he mentions. As you can imagine it´s a huge negotiation so one day they agree on something the next day they take it back then they agree on it again etc etc... The colombian government wants the deal signed by november, we´ll see if that happens...

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Hunter says on Sep 3, 2005, 09:29:

BAQ I think you will find that the fee for the Movement of Money on Colombian bank accounts is a Central goverment tax, the banks collect the money, then send it onto the goverment.

Hunter

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