Tuesday, April 28, 2009
Monday, April 27, 2009
Mexican Commentary April 27, 2009
Mexican Commentary April 27, 2009
Mexican ADRs declined from fear that the Swine Flu will impact the economy on April 27, 2009. With IBA’s swine production particularly a worry, it was sold today. In addition we eliminated GOL, KOF, GMK and SDA. These stocks are particularly exposed to the food sector. Tourist related business was also more affected by the decline as represented by GOL a Brazilian airline.
The clearstation.com portfolio stands at $340,230.53 for 33 individual items that originally had $10,000 representation for each and is ranked # 19 on Clearstation.com, up 3 slots from the previous day (Friday).
All Mexican stocks in the portfolio declined. Mexican home builder HXM led the decline at 19.46 down 2.39, 10.93% followed by construction company ICA at 7.26 down 0.77, 9.58%.
According to the Bank of Mexico, the peso closed at 13.775 to the US Dollar, 4.1% lower than on Friday.
On the Bolsa in Mexico City, the IPC index at 21,827.109 down 3.34%.
The reaction to the fear of a pandemic of Swine Flu had a very negative effect on the peso and financial markets today. Deaths from the disease continue to be reported but trends are uncertain. If increasing trends for deaths follow this first news, a sharper than expected contraction to the Mexican Economy would follow. This should continue to impact the peso, stock prices, inflation and may cause a wave of illegal immigration into the United States. This would be a temporary phenomena but its duration is uncertain.
Analysis of previous news impacts concerning heath like SARS for example, show a pattern of a trough forming flowed by economic recovery. This would make for an exceptional opportunity for the purchase of Mexican securities. I will continue to be alert and will note changes here.
Mexican ADRs declined from fear that the Swine Flu will impact the economy on April 27, 2009. With IBA’s swine production particularly a worry, it was sold today. In addition we eliminated GOL, KOF, GMK and SDA. These stocks are particularly exposed to the food sector. Tourist related business was also more affected by the decline as represented by GOL a Brazilian airline.
The clearstation.com portfolio stands at $340,230.53 for 33 individual items that originally had $10,000 representation for each and is ranked # 19 on Clearstation.com, up 3 slots from the previous day (Friday).
All Mexican stocks in the portfolio declined. Mexican home builder HXM led the decline at 19.46 down 2.39, 10.93% followed by construction company ICA at 7.26 down 0.77, 9.58%.
According to the Bank of Mexico, the peso closed at 13.775 to the US Dollar, 4.1% lower than on Friday.
On the Bolsa in Mexico City, the IPC index at 21,827.109 down 3.34%.
The reaction to the fear of a pandemic of Swine Flu had a very negative effect on the peso and financial markets today. Deaths from the disease continue to be reported but trends are uncertain. If increasing trends for deaths follow this first news, a sharper than expected contraction to the Mexican Economy would follow. This should continue to impact the peso, stock prices, inflation and may cause a wave of illegal immigration into the United States. This would be a temporary phenomena but its duration is uncertain.
Analysis of previous news impacts concerning heath like SARS for example, show a pattern of a trough forming flowed by economic recovery. This would make for an exceptional opportunity for the purchase of Mexican securities. I will continue to be alert and will note changes here.
Saturday, April 25, 2009
Mexican Commentary April 25, 2009
Mexican Commentary April 25, 2009
Mexican ADRs lagged in the increase for the MexCom clearstation.com portfolio at the close on April 24, 2009. It stands at $407,159.28 for 38 individual items that originally had $10,000 representation for each and is ranked # 22 on Clearstation.com, up one slot from the previous day. No changes were made to the list yesterday.
Home builders led the advance with LEN at 9.97 up 1.30, 14.99% and RYL at 23.30 up 2.04, 9.68%. One outstanding Latin stock is Brazilian SDA at 5.14 up 0.65, 14.47%. GMK continued as the best performing Mexican stock on the list 2.63 up 0.23, 9.58%. This was purchased in my IRA account yesterday. Profit taking continues in RC 6.10 down 0.75, 10.94%.
According to the Bank of Mexico, the peso closed at 13.2318 to the US Dollar.
On the Bolsa in Mexico City, the IPC index at 22,582.170 advanced by 3.34%.
Mexican ADRs lagged in the increase for the MexCom clearstation.com portfolio at the close on April 24, 2009. It stands at $407,159.28 for 38 individual items that originally had $10,000 representation for each and is ranked # 22 on Clearstation.com, up one slot from the previous day. No changes were made to the list yesterday.
Home builders led the advance with LEN at 9.97 up 1.30, 14.99% and RYL at 23.30 up 2.04, 9.68%. One outstanding Latin stock is Brazilian SDA at 5.14 up 0.65, 14.47%. GMK continued as the best performing Mexican stock on the list 2.63 up 0.23, 9.58%. This was purchased in my IRA account yesterday. Profit taking continues in RC 6.10 down 0.75, 10.94%.
According to the Bank of Mexico, the peso closed at 13.2318 to the US Dollar.
On the Bolsa in Mexico City, the IPC index at 22,582.170 advanced by 3.34%.
Friday, April 24, 2009
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.
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.
Thursday, April 23, 2009
Mexican Commentary April 23, 2009
After a volatile trading day in US markets the MexCom portfolio closed slightly lower.at the close on April 22, 2009. It stands at $386,115.21 for 37 individual items that originally had $10,000 representation for each and is ranked # 24 on Clearstation.com. GOL was added to the list yesterday.
GOL was added to represent the airline industry, a Brazilian company that has paid a good dividend in the past. Many US airline stocks have been performing better in the market with the prospect of economic recovery and lower oil prices but passenger traffic currently has declined making it a very speculative play for this low priced stock.
RC at 7.05 was down 1.20 was the sharpest decliner down 14.54% on only 1,900 shares traded. The best Mexican performer in the list was GMK at 2.24 up .19, 9.26%. It is up 17.9% since being added to the list on April 9.
GOL was added to represent the airline industry, a Brazilian company that has paid a good dividend in the past. Many US airline stocks have been performing better in the market with the prospect of economic recovery and lower oil prices but passenger traffic currently has declined making it a very speculative play for this low priced stock.
RC at 7.05 was down 1.20 was the sharpest decliner down 14.54% on only 1,900 shares traded. The best Mexican performer in the list was GMK at 2.24 up .19, 9.26%. It is up 17.9% since being added to the list on April 9.
Tuesday, April 21, 2009
MexCom Portfolio
Follow the MexCom portfolio on Clearstation.com
http://finance.yahoo.com/p?v&k=pf_51
http://finance.yahoo.com/p?v&k=pf_51
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