Cemex S.A. B de C.V. (ADR) (CX)

JDSancho (99.04) Submitted: 3/30/08 6:34 PM : Start Price: $25.15 CX Score: -18.36

Alright, let's talk about cement, because nothing is more exciting. Exactly why this investment is interesting to me. I love boring companies. Plus, I believe CX is a growth company misvalued. According to Yahoo Finance's Analysts Estimates, CX is going to grow at 4.3% over the next 5 years. I think that may be a lowball estimate. Currently trades around 8x 2009 earnings with some cash on hand, a 2.8% dividend, a modest 17% ROE and 11% Profit margin, and virtually no competition. I don't like that it has 50% sales coming from the U.S. but I do like that the other 50% are in foreign market poised for better growth than the U.S. I also like to see that I'm in good company when investing, and I think we are here: Dodge & Cox and Longleaf Partners, two highly respected mutual funds are large holders. So, boring, yes. Undervalued, in my opinion. A solid, concrete company, absolutely.

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