Argentina Dangles a Billion-Dollar Carrot for Today’s Best Stock to Buy

Todays top stocks to buyDesperate to boost economic output, Argentina is offering juicy incentives to attract deep-pocketed energy companies. One such company is taking the bait, making it today’s best stock to buy.

Argentina isn’t exactly known as the sort of game-changing investment mecca that other resource-rich nations are recognized for.

In fact, historically it’s been one of the toughest climates in the world to do business.

Dating back to the 1950’s, corruption, scandal and greed have poisoned all levels of government.  As a result, the country has run the gamut of turmoil including juntas, political coups, debt defaults, hyperinflation, widespread unemployment, and violent riots.

To sum it all up, the World Bank’s recently ranked Argentina as the 124th country out of 185 nations in its latest Ease of Doing Business Index – not exactly a stat that gets investors interested.

But as you’ll soon discover, things are slowly beginning to change…

Argentina Will Be Rich – IF They Get Their Act Together

Few of us realize it, but Argentina is a natural resource powerhouse.

According to the U.S. Energy Information Administration the country holds the world’s second-largest shale gas reserve and fourth-largest shale oil deposit.  On top of that, it’s also a top producer of soy and wheat – 3rd and 13th in the world, respectively.

The only thing this country needs is to start getting its act together — something that may be finally happening.

President Cristina Fernandez de Kirchner is embarking on an unprecedented campaign to ramp up her nation’s energy industry.

What’s her offer to deep-pocketed energy investors?

She wants to open up the massive Vaca Muerta (Dead Cow) shale formation located in the Neuquen province of Argentina for exploration.

This is one of the best, untapped discoveries in the world. Discovered in 2010, the field is estimated to contain 22.5 billion barrels of oil – effectively ranking Argentina 4th in the world in technically recoverable oil.

However, exploiting this immense cash cow has been a slow go with few companies willing to venture into Argentina.

The main reason for this is that the Argentine government seized Repsol’s 51% stake and nationalized YPF SA in May 2012.  Understandably, since then oil & gas firms have been reluctant to enter into new business deals in Argentina.

But recently, Kirchner has been aggressively courting foreign companies to help develop Vaca Muerta and one major sign of confidence seeping back into the country is the recent completion of a blockbuster agreement with today’s best stock to buy.

Best Stocks to Buy Now:

Chevron Corp (CVX:NYSE)

Chevron and YPF signed off on a contract worth an initial $1.24 billion to undertake exploration and production initiatives at Vaca Muerta.

The deal could eventually grow to $15 billion over the next few years with daily production possibly reaching 50,000 barrels of oil and 3 million cubic feet of gas by 2017.

This is no small chump change — even for an oil giant like Chevron.

The potential at Vaca Muerta is enormous, just like it was in the Bakken. And with Chevron getting in there first, before anyone else, it could be a serious cash cow for the company (hence why its being named a best stock to buy).

Argentina is hopeful that Chevron will be the first of many more deals to come.

Kirchner is now offering all energy projects worth $1 billion or more to export 20% of their fuel production without having to return foreign proceeds back to the government.

Firms will also be exempt from paying export taxes on 20% of all their production.

What’s more, the companies will be allowed to sell their product to the domestic market at international prices if the local supply is insufficient.

Such incentives are very attractive for an industry that’s constantly looking for ways to maximize margins.

With a company like Chevron onboard, this might be the big break that Argentina has waited so long for.

It’s likely just a matter of time before others jump in.

For once, the world is starting to take notice of Argentina for the right reasons.

And you should too.

Yours in profits,
Todays top stocks to buy
John Holt
for Top Stock Millionaire
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