Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Not Much Hope Left For Homex

In the steel cage match between hope and despair in the Mexican home building industry, hope got in a headbutt in back in the middle of April, but despair has pretty much had the industry in a figure four leglock ever since. None of the major publicly-traded builders - Homex (NYSE:HXM), GEO (OTCPK:CVGFY), Urbi (OTCPK:URBDY) or Ara (OTC:CNRFF) - are doing well, and the middle two (GEO and Urbi) have been halted since midsummer after postponing their second quarter releases indefinitely.

There are a range of issues impacting this industry. Not unlike what happened in the U.S., many Mexican homebuilders took on debt thinking the building boom could only continue, but housing...

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