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Alan R. Goozner During the 1994 Peso crisis, I started an e-mail newsletter. This followed from my comments to Mexican interest groups and list servers on the rapidly expanding Internet. The newsletter became a copyright publication : "The Mexican Commentary." This had a limited paid... More
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  • Record Snows Portends Record High Grain Crop Yields 2 comments
    Feb 11, 2010 3:04 PM | about stocks: ADM, INGR, GMK
    Most of the news on the recent snowfall is centered on the East Coast but the Mid-West is getting their share.  These high amounts of snow will boost soil moisture guaranteeing a record high yielding crop for most of the corn belt and some Eastern states too.  Ohio New York and Pennsylvania have significant acreages that will greatly benefit to boost the 2010 corn crop to be the highest ever on record.

    Farmers would do well to hedge their crop with the current up-tic on price.  Come harvest time this fall, corn could go below $1 a bushel coming out of the field.

    Investors can benefit from the corn glut by buying companies involved with milling, marketing and transport of the commodity.  Archibald Midland (NYSE:ADM) and Corn Products (CPO) instantly come tom mind but my best play is the Mexican miller - Gruma (GMK.)  



    Disclosure: Long GMK
    Themes: Corn Stocks: ADM, INGR, GMK
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  • LadaNiva
    , contributor
    Comments (4) | Send Message
     
    Just curious if you have any idea what's going on in Venezuela since GMK seems to be silent on the status. My biggest complaint about this company is their total lack of communications with shareholders. If you go to their website, click on investor relations and then news, the most recent news is from 2003. Also their silence on earnings announcement date is beginning to have me worried a little.
    17 Feb 2010, 10:07 AM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    Author’s reply » The stock has recovered well from the lows of last year. Those buying in back then will now start to sell for long-term gains. But, the capitalization is mostly on the Mexican side.

     

    The recovery on this company that is now highly leveraged will continue to depend on their management ability, overall economic stability and continued growth of the Mexican population, shift to packaged consumer goods and increased world consumption of corn meal products and tortillas.

     

    As long as the debt is comfortably re payed and sales increase, we should see steady growth with less volatility and eventually receive a dividend. Now as part of the IPC index on the Bolsa - in less than 5-years this will be considered one of the best Mexican blue chips to own.
    22 Feb 2010, 09:22 PM Reply Like
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