Homex (HXM), a Mexican mass market home builder, is a former fund holding that has really taken off in the past week, ahead of earnings. Another example of no leaking of news, I am sure - that type of chicanery never happens in the stock market. This is actually a chart that a momentum-chasing technical trader would dream of, but I'd rather buy it on a pullback, as it's just put on a 11% move and this is not a stock that has huge volatility, so that is a substantial move for this type of stock.
However, I am glad to see the name on track again after a tough year in 2007 - this was a very good stock for me in 05, and especially 06. I continue to look for opportunities outside the US, in stable countries such as .... Mexico.
The full detailed earnings report can be found here, some highlights below
I'll be interested in beginning a position anew in the mid $50s.
- Mexican homebuilder Homex (HXM) posted a 149 percent leap in fourth-quarter net profit as sales rose solidly amid a local housing boom and operating profits also jumped.
- Homex said on Tuesday its October-December net profit was 734 million pesos ($67 million), up from 294 million pesos a year earlier.
- The Culiacan-based company, which specializes in mass-produced houses that sell for less than $30,000 each, said revenue jumped 22 percent to 5.516 billion pesos.
- Homex said it sold 16,393 homes during the quarter, 18.4 percent more than in the same quarter in 2006.
Disclosure: No Position.