"The Mexico Fund (NYSE, MXF, $25.38) is our top pick among country funds," says Sy Harding, Investor Forecasts, Palm Coast, Fla.
"The potential here is twofold. First, the modernization of Mexico and its developing economy should provide ongoing opportunities for corporate profits. Second, as investors begin to take note of these improving earnings prospects, the current discount on these could well be transformed into a premium. The Mexican economy is growing at a 6 percent annual rate."
"The Argentina Fund (NYSE,AF, $14) invests most of its assets in stocks listed on the Buenos Aires exchange," notes Eric Kirzner, The Hume MoneyLetter, Marietta, Ga.
"This market is small and illiquid by our standards. Argentina is the second largest nation in South America; the country is resource rich. The country is well known for its political volatility. However, some recent economic initiatives appear designed to encourage exports and stabilize the currency. We recommend purchase."
Growth Fund of Spain
"I believe the Spanish equities market is very inexpensive and should outperform the U.S. and Europe in 1992," says Alan Benasuli of Smith Barney in recommending Growth Fund of Spain (NYSE, GSP, $10.50).
"I believe interest rates will come down in Europe; Spain will be no exception. . . . Meanwhile, the Spanish market sells at under 10 times estimated 1992 earnings [vs. 20 in the United States]. . . . Growth Fund of Spain . . . is trading at a 15 percent discount to its net asset value."
"American Shipbuilding (NYSE, ABG, $3) is a shipwreck that could turn into a dreamboat," says F.X.C. Investors, Queens, N.Y.
"The company -- whose chairman is George Steinbrenner -- is up for a $300 million contract. The full contract is to build six ships (American Shipbuilding has already won the rights to build the first ship in this program). If the full contract is awarded, the stock could rise significantly. . . . We caution that this is an extremely speculative and highly risky idea."