Why PriceSmart Has Done Nothing for Investors in 2012

PriceSmart (Nasdaq: PSMT  ) has had an uninspiring 2012. After rising big out of the gates, the company gave a lot back and has left investors wanting. The company is narrowly underperforming slower-grown blue chip indexes like the Dow. The reason for the sourness? It all comes down to Latin American growth prospects, which have been whittled lower for a multitude of factors. The International Monetary Fund is now calling for lower global growth in 2013, anchored by lower than previously expected emerging market GDP expansion. Taking a few big steps back, though, reveals an incredibly strong company with a winning model that should transcend emerging market softness for years to come.

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Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Arcos Dorados, Costco Wholesale, and MercadoLibre. Motley Fool newsletter services recommend Arcos Dorados, Costco Wholesale, MercadoLibre, and PriceSmart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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