GMK Gruma: After a blazing positive reaction to the recent finance news, it is just natural to expect some profit taking. This is has been at a much lower volume than the recent buying frenzy and today, volume is very light.
October is a worrisome month for the market in General and its off to a weak start from overall weaker than expected economic news on employment in the United States. This I believe is temporary and the economic recovery is still on track.
Gruma today filed with the SEC a notice of extension of debt negotiation as filed with the Bolsa. This is a legal requirement for Mexican companies but is in reality no new news. One thing that does come to mind is that with the final terms better illustrated and analysts able to push the pencil to figure out potentials for future profitability then confidence will continue to build for expectations for higher valuations for the stock price.
Today's market weakness for me is an opportunity where I did take advantage to purchase some additional shares.
I continue to hold GMK ADRs is all my family accounts that I manage and feel better than ever that this company is going to do fabulously well. Also of note is some recent publicity the Gruma (Grupo Maseca) recently received some international recognition. (Link to follow)
Disclosure: Long
GMK Gruma: Sell-off Today in Weak Market
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