I liked Cemex (NYSE:CX) back in February, and the 70% move in the shares since then has certainly been gratifying. While Cemex's management has continued to make progress with its deleveraging efforts (including selling assets) and has remained committed to its "value before volume" philosophy, the company has also benefited from easing forex pressures and improving demand in many operating areas.
The question for me now is what takes Cemex to that next level. The shares are above my prior fair values, but not enough has changed in my views about the company or its markets for me to significantly change my estimates and expectations. While I do think better days could be ahead for Cemex in terms of both pricing and volume in the U.S., Mexico and Latin America, it looks like a lot of that is in the price today.
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Cemex Needs A New Set Of Drivers