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

DEBT...DEBT...DEBT...I SEE A PULL BACK TO $10....I AM A BUYER AT 30% OFF...A LITTLE AHEAD OF THE CURVE RIGHT NOW

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~keystone

I've held this stock for a few years. At first it did really well - after all, I figured there would always be a need for concrete, right? However, I'm now down ore than 65% and wish I'd sold out when I had a profit.

The fool keeps pitching this issue. I think it is risky

The company is getting close to what might be seen as a potential default candidate. Their books are full of debt and over USD 6 bn. are maturing within 2009. While USD 4 bn. can be seen as "refinanced" USD 2 bn. are left uncovered...
Yes the stimulus packages around the world might help... but (if at all) they will only stop the downward trend in revenues and profit.

Even the management said that their strategy went very wrong! The huge acquisition made at the peak of the cycle can not be managed with their traditional strategy of fast refinancing and debt covering by asset sales. Remember that right now the assets which they would be willing to sell might find very, very few buyers!

Cemex is depending on bank loans to outperform the market and it looks like Citigroup who's stocks is under $4 is their lending source.

http://www.cemex.com/ic/ic_si.asp

High debt levels, much of which come due this year, coupled with a global slow down and extremely difficult financing environment will destroy this company. If the Obama administration is able to push an infrastructure-based stimulus package, the cement/concrete industry will benefit only after the engineering/design work is completed. Under this (I think likely) scenario, the cement/concrete industry can look to begin a recovery in 2010. Insiders are predicting that a return to 2008 sales levels won't return until 2013 or later. Their debt levels make their survival during this prolonged downturn doubtful.

too much debt and no more construction boom! Not good.

They have a stagering 20 BILLION in debt. Some of it due in December 2009. I do not know how these FOOLS keep recomending this company. The stock has lost almost 75% this year alone !!!

They just announced 2 months ago that they lost 711 million USD in derivatives !!!

I do know but I find highly unlikely that the stock price will go back to the 20's, heck it will be though for it to climb above the mid 10's.

Cash flow vs. Debt due.......also housing market could be slower to recover and funds better deployed elsewhere. Should the credit markets stay the same, CX may find it very difficult to line up bridge financing. Mexican Gov't., with oil in the mid 60s will be difficult to tap.

caps worst 30days

Cemex will be fine, and certainly has a good long-future despite the loss of its' Venezuelan assets. However, I do agree that a likely strong extended downturn in already frothy commodity prices, will definitely affect their results in the short and likely intermediate-term. Long-term they should be fine. Despite a slumping global housing market, infrastructure spending will likely continue its' upward climb. That climb could likely come stronger here as we're finally forced to repair our aging transportation system.

This all said, I thought Sadam was dumb and Fidel was stupid, but this fool clearly takes the cake! If he continues to blindly seize his country's corporate assets, the Venezuelan economy is in for a nasty litte treat! I feel for anyone middle-class and above, excluding the idiot's regime. The fact that dictators continue to push socialism, and many times brainwash their constiuents into supporting it in this day in age, still ceases to amaze me.

With money getting tight there will be less building going on therefore less need for these products.

CX has a worldwide franchise and the resources to match. Artfull purchases continue to make it a more valuable company. Demand for cement is high and should continue high regardless of the economies of the world. Debt used to acquire additional facilities within the 50 or so countries where CX operates continues to be a drag on earnings. After about one year or less the profits from the acquisitions should begin to allow substantial repayment of debt at which time the corporate earnings will surge. Hold for now and look for great things not too far into the future.

The market for aggregates keeps slowing down. Maybe in the long run this stock could make a girl happy, but right now this feels like a faded summer fling.

CEMEX, S.A.B. de C.V.,through its subsidiaries, engages in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and other construction materials worldwide. The company sells its products primarily to distributors in the construction industry. It operates primarily in the Americas, Europe, Africa, the Middle East, and Asia. The company was founded in 1906. It was formerly known as CEMEX, S.A. de C.V. and changed its name to CEMEX, S.A.B. de C.V. in 2006. CEMEX is headquartered in Garza Garcia, Mexico.

The negative factor hanging on this stock is the serious slowdown in building in the U.S.

This is a giant to be reckoned with, however.

I doubt there will be a positive turnaround inside of two years.

This is a solid company that is poising itself for the next US building boom. Its global reach cushions it against building slowdowns in any one country.

Recent slowdown in new builds will effect CX for a few months, but long term it will be more than good.