With Mexico Looking Wobbly, PINFRA Looks Even More Attractive

Mexico’s economy doesn’t look all that strong now, with uncertainties regarding the trading relationship with the U.S. leading companies to defer/delay new investments and less activity from the government than expected in terms of supporting investments into improved public works. Against that backdrop, I believe Mexican companies with solid, less cyclical base business and strong overall financial positions will do better, and PINFRA (OTCPK:PUODY) (PINFRA.MX) definitely qualifies in my view.

Despite a weaker than expected first quarter and an initially worrisome change to a concession agreement, PINFRA shares are still up about 20% from my last article, as the shares have recovered much of what I thought had been panic-driven selling at the time. Although PINFRA isn’t immune to a weaker Mexican macro environment, I believe the shares are still undervalued enough to be worth consideration. I will note, though, that the ADRs are not particularly liquid.

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With Mexico Looking Wobbly, PINFRA Looks Even More Attractive