The Mexican economy isn't helping much, but FEMSA (NYSE:FMX)
continues to post respectable results on the back of its strong OXXO
convenience store chain. Taxes in Mexico and extreme currency problems
in Venezuela are hurting the company's stake in Coca-Cola FEMSA (NYSE:KOF),
but FEMSA continues to explore new avenues of growth in Mexican retail
like pharmacies, restaurants, and now gas stations and has the option of
using its Heineken (HINKY) stake to fund larger initiatives.
Operationally,
FEMSA still looks like an attractive stock to hold, but currency moves
have negatively impacted my valuation. At around $90 or below, I would
certainly give strong consideration to adding this name to a portfolio,
as I believe it not only one of the best-run Latin American companies,
but also one with extensive growth options for the coming years.
Read the full article here:
FEMSA Leveraging OXXO And Has Ample Dry Powder
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