Ultrashort Mexico (NYSEMKT:SMK)

CAPS Rating: 1 out of 5

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Player Avatar TerryHogan (99.95) Submitted: 11/24/2012 1:02:30 AM : Underperform Start Price: $22.35 SMK Score: +49.92

Ultrashorts are not meant to be held for the long term, so this guy will degrade over time with any volatility. Plus, as long as Slim sees opportunity down there, I'm keen on Mexico. I mean if you can lose 8000 people a year due to drug violence, and still keep rolling, there's got to be opportunity. Plus, the trend towards legalization in the US should only help things down there.

Member Avatar mccp (< 20) Submitted: 10/9/2013 4:36:06 PM
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legalization in the U.S. would be devastating for mexico in the long-term. profit margins on most exports are rather small. profit margins on drugs are probably something like 90%. Drugs along with remittances are going to be a huge source of investment capital in the future just like profits made from bootlegging helped the U.S. in the long-term.

that said. this SMK thing is as bad as they come. But your understanding of how legalization would affect mexico is completely backwards.

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