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
No comments:
Post a Comment