Empresas ICA SA (ADR) (NYSE:ICA)

CAPS Rating: 1 out of 5

The Company is engaged in a full range of construction and related activities, involving the construction of infrastructure facilities, as well as industrial, urban and housing construction.

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Member Avatar RES7 (98.30) Submitted: 8/31/2015 12:24:49 AM : Underperform Start Price: $1.55 ICA Score: +7.64

jed71

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Member Avatar pchop12316 (84.18) Submitted: 8/27/2015 7:25:26 AM : Underperform Start Price: $1.61 ICA Score: +11.58

likely to greatly underperform at least near term

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Member Avatar jed71 (99.38) Submitted: 8/26/2015 1:40:00 PM : Underperform Start Price: $1.57 ICA Score: +12.48

So what happens when the USD quickly strengthens against an emerging market currency? This…. from Bloomberg….

“Empresas ICA SAB’s debt due 2021 has lost 43 percent this month, the most in emerging markets. The decline to a record low is remarkable even by the standards of developing nations, which are suffering one of the worst selloffs since the financial crisis.
ICA has plummeted in the wake of its decision earlier this month to sell a stake in its prized airport operator, a week after declaring it all but untouchable. The about-face is fueling speculation the company faces a cash crunch as cutbacks in government infrastructure projects reduce demand for its services and the sinking peso drives up its leverage.
The sale “‘was interpreted as meaning that the company had a liquidity problem,’’ Edgar Cruz, a debt analyst at Banco Bilbao Vizcaya Argentaria SA’s local unit, said from Mexico City. ‘‘Some bondholders are worried about a default scenario.’’
ICA said Aug. 7 that it sold the 2.9 percent stake in Grupo Aeroportuario del Centro Norte SAB, an airport operator known as OMA, for 967 million pesos ($56 million) and would use the money to pay debt.
Chief Executive Alonso Quintana said ICA made the move because it was able to convert some dollar debt into peso liabilities as part of the deal.”

Nearly 50% of their very considerable debt load is dollar denominated, and the peso continues to get beaten up by dollar strength. I wish them well, but I doubt they are able to survive another 12 months if the dollar continues to strengthen versus emerging market currencies. Their financial situation and balance sheet look extremely weak, and the company is taking steps to sell some of its most prized assets - not a good situation for shareholders. Seems like an extremely easy down thumb on a company that is already on the ropes.

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Member Avatar wjwcapital (91.72) Submitted: 1/14/2009 6:07:54 PM : Underperform Start Price: $6.63 ICA Score: +215.09

Mexico infrastructure play. PEG ratio is above 2 with earning estimates potentially too high to begin with. On top of this, the company has lots of debt.

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Member Avatar dothedow (90.46) Submitted: 5/6/2008 4:18:12 AM : Underperform Start Price: $24.47 ICA Score: +138.84

7

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Member Avatar suhsido1 (< 20) Submitted: 11/15/2007 6:01:58 AM : Outperform Start Price: $25.90 ICA Score: -134.21

Pro: better stock chart than Google.
Con: No analysts here.

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Member Avatar Mktintelanalyst (< 20) Submitted: 9/14/2007 12:55:12 PM : Outperform Start Price: $23.26 ICA Score: -132.34

PR today says they may get into Panama Cannal expansion project. Housing unit to get listed. They already have a rapidly growing construction portfolio. Their richest holder Carlos Slim owns a bank!

They have com a long way from the Mexican Toll Road consession fiasco. Recently had a stock split.

Get ready to see this one move!

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Member Avatar UncannyHoosier (31.66) Submitted: 1/22/2007 12:46:42 PM : Outperform Start Price: $14.74 ICA Score: -136.49

Mexican Gov't will keep this company busy.

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