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We originally recommended Cemex (NYSE: CX) on December 15, 2008 at $8.16. The stock closed Friday at $9.32. (All figures in U.S. dollars.)

I'm torn about the prospects for Cemex. On the one hand, it's a beaten-down stock that fits in exactly the right spot for the infrastructure reflation trade. On the other hand, it still has a huge amount of debt which appears to be getting more manageable but nevertheless will impede the growth of the company.

The first-quarter numbers were dismal. The company reported a meager profit of $3 million compared to $470 million in the same period last year. Sales were down 32% at $3.7 billion, well below analysts' expectations.

However, the technical indicators look extremely positive for the stock: the 50-day moving average is rising and the relative strength is bullish. Since we recommended the stock it is up 14% and could easily go higher. Still, at this point I would take a wait-and-see attitude.

Action now: Hold.

Source: Cemex: Taking a Wait-and-See Approach