Wednesday, July 29, 2015

Seeking Alpha: FEMSA Continues To Play The Long Game

As a family-controlled operation, FEMSA (NYSE:FMX) management has the option to run the business with an exceptionally long-term focus and make trade-offs between short-term growing pains and long-term opportunities. To that end, recent ventures into fast food, pharmacies, and gas retail aren't going to do much to boost near-term valuation, but they support a long-term vision of FEMSA as a comprehensive play on the Mexican consumer across multiple facets of their lives.

The near-term performance of FEMSA's ADRs is certainly tied to the performance of the Mexican peso, and that's not a good thing at the moment. Nevertheless, I believe these shares now trade at a double-digit discount to fair value and offer a good option for investors looking to gain exposure to the Mexican consumer.

Read the full article here:
FEMSA Continues To Play The Long Game

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