Mexican Commentary April 24, 2009

Mexican Commentary April 24, 2009

Mexican ADRs lead the increase in the MexCom portfolio at the close on April 23, 2009. It stands at $398788.25 for 38 individual items that originally had $10,000 representation for each and is ranked # 23 on Clearstation.com, up one slot from the previous day. IMKTA was added to the list yesterday.

Ingles Markets (IMKTA) is a supermarket chain predominate in North Carolina. They recently reported an earnings decline being impacted by the recession. Previously they have been showing excellent growth modernizing their markets and adding gas sales to many locations. Some of their sales decline may be due to a decline in gas prices compared to a year ago. Population growth has been above the average for the US in this part of the country but current unemployment is now approximately 10%. Their dividend at 4% yield makes it attractive and current earnings has it well covered. They haven’t increased their dividend in a number of years but should be due for a dividend increase within one year after this recession is over and growth resumes.

GMK at 2.4 up 0.16 was for the second day the best performing Mexican stock on the list up 7.14% on good volume. It is up 26% since being added to the list on April 9. Since being first added, GMK is our best performing Mexican stock on the list followed by RC, HXM, and KOF. AMX was the second best performer yesterday closing at 31.28, up 1.10, 3.64%. It is up 3.2% since added to the list on April 3.