Mexico-based tortilla giant Gruma (OTC:GPAGF)
(GRUMAB.MX) hasn’t made the progress I’d hoped for back in January.
Although the company is showing some of the margin leverage I was hoping
for, forex-related pressure on revenue and inconsistent results in
Europe have weighed on results. With that, the illiquid ADRs are down
about 15%, with a similar decline in the Mexico-listed shares. Although I
do still see upside in these shares, and I believe it’s a well-run food
company with leverage to improve margins in the U.S. and Mexico, as
well as growth opportunities in markets like Europe, the ADRs are quite
illiquid and I can certainly understand investors who decide it’s not
worth the hassle.
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Gruma's Margins Are Improving, But Forex Is Taking A Toll
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