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portefeuille (99.60)

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January 27, 2010 – Comments (10)

sometime last winter i told a friend of mine that I am playing a "stocks game" on the internet and told him about a few stocks i liked. i guess i felt a little like checklist34 does, nobody really cares, hehe. we were standing in an "irish pub" and i finished by saying something like "what is funny is that the stock i like best is the stock of a mexican producer of tortillas.

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#124) On March 08, 2009 at 7:11 PM, portefeuille (99.96) wrote: GMK - 0.93 - outperform

#561) On July 12, 2009 at 10:50 AM, portefeuille (99.96) wrote: GMK - end outperform - 4.38 - no new rating

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(from here

GMK is currently at around $8.35.

i never bought any shares. and since that "night at the pub" i always have "mixed feelings" when i "come across" that stock ...

 

and staff, do away with that ridiculous $1.50 rule!

10 Comments – Post Your Own

#1) On January 27, 2010 at 1:21 PM, portefeuille (99.60) wrote:



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#2) On January 27, 2010 at 1:22 PM, portefeuille (99.60) wrote:

tortillas.

tortillas."

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#3) On January 27, 2010 at 1:33 PM, portefeuille (99.60) wrote:

why was the stock price ever so low?

Gruma Continues to Face Pressure in 4Q

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#4) On January 27, 2010 at 1:38 PM, portefeuille (99.60) wrote:

(okay, people don't like links ...)

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Gruma Continues to Face Pressure in 4Q

by Erin Swanson, CFA | 02-23-09 | 12:26PM

Gruma GMK reported weak fourth-quarter and full-year 2008 earnings, as the firm continues to be constrained by the troubling breakdown of its currency hedging activities. Given the weakening Mexican economy, mounting cost pressures, as well as the fact that the company is saddled with a significant amount of U.S. dollar-denominated debt and has substantial obligations outstanding tied to the use of derivatives for some of its currency hedges, we have grave concerns about the company's ability to overcome its current situation. In our opinion, Gruma is still in fairly dire straits and, at this point, we are leaving our fair value estimate and uncertainty rating in place.

In the fourth quarter, Gruma was able to generate positive sales results, in addition to realizing operating margin expansion, as the significant price increases taken offset the impact of elevated input costs. However, Gruma's profitability is still being affected by a significant deterioration in the value of its currency hedges (brought on by the weakening of the Mexican peso relative to the U.S. dollar), and the firm continues to face additional noncash charges related to the mark-to-market valuation of its currency hedges. Since this follows in the wake of what was a remarkable bankruptcy filing late last year by one of Mexico's largest retailers, Controladora Comercial Mexicana (related to significant cash losses on these types of currency derivatives), we maintain that bankruptcy is not outside of the realm of possibilities for Gruma.

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#5) On January 27, 2010 at 1:45 PM, portefeuille (99.60) wrote:

i like stories about tortillas and rogue bankers.

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Gruma Declines After Venezuela Seizes Stake in Unit

By Tal Barak Harif

Dec. 28 (Bloomberg) -- Gruma SAB, Mexico’s largest maker of flour for corn tortillas, declined the most in a month after saying that Venezuela’s seizure of the assets of an arrested banker included a minority stake in its local units.

Gruma dropped 3.5 percent to 22.74 pesos in Mexico City trading, the biggest slump since Nov. 26. The shares have more than tripled this year, compared with a 46 percent gain in the country’s benchmark Bolsa index.

Venezuela charged Ricardo Fernandez, the owner of four banks, with diverting deposits, improperly issuing credit to the owner’s companies and failing to prove the origin of funds. Fernandez has an indirect 24.1 percent stake in Valores Mundiales and a 40 percent stake in Consorcio Andino, both of which are units of Monterrey, Mexico-based Gruma, the company said in a statement to the Mexican stock exchange on Dec. 24.

“It’s not good news when such a government is investigating Fernandez as there’s concern of the impact on the Venezuelan unit,” said Gerardo Roman, head of trading at Mexico City-based Actinver SA. “Even though less than 5 percent of the sales of Gruma are derived from its Venezuelan unit, it could still lead to a drop” in revenue.

Gruma said it can’t assure that a greater involvement from the Venezuelan government won’t have an “adverse material effect” on its financial condition and operations.

Cemex Seizure

Investors have had increasing concern that Venezuela may become involved in Gruma’s units after the government of Hugo Chavez confiscated the local operations of Mexican cement maker Cemex SAB in August of last year, Roman said in a telephone interview. Cemex said in September 2008 that the nationalization of the business would hurt earnings.

The Chavez administration last week published an order dated Dec. 4 that put some plants owned by Valores Mundiales and Consorcio Andino under government control. A plant in Puerto Cabello was taken over by national guard and navy troops, according to the Dec. 21 issue of the Valencia, Venezuela-based El Carabobeno newspaper.

Plants are operating normally, Gruma said in its statement to the Mexican exchange.

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#6) On January 27, 2010 at 1:48 PM, portefeuille (99.60) wrote:

... Ricardo Fernandez, the owner of four banks, ...

my favourite part, don't know why ...

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#7) On January 27, 2010 at 1:58 PM, portefeuille (99.60) wrote:

Gruma negocia para dejar sin efecto intervención

Monaca continúa con sus operaciones

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#8) On January 27, 2010 at 2:09 PM, portefeuille (99.60) wrote:

Panquecas recipe from the Monaca website (click twice).



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#9) On January 30, 2010 at 12:44 AM, MGDG (34.96) wrote:

I like Pancakes, so this is a good blog. Interesting stuff Porte. I do wonder where a lot of those deposits to his Banks originate from. Maybe he runs a laundry business on the side.

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#10) On March 16, 2013 at 5:27 PM, portefeuille (99.60) wrote:



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