Summary: One interesting thing about Cemex (CX) is the importance of the U.S. to its value is really the whole swing factor. As the peak of the cycle, which we will never get back to, they generated $2.5 billion of EBITDA. Southeastern does not believe they will ever get back to that point, but if they got half way back, that would be $2 of free cash flow on a $2 stock, which is worth the wait. The second biggest reason is Mexico. Mexico is the most interesting way to take advantage of Chinese labor costs. Many good things going on in Mexico despite gruesome headlines; it’s the best economic place to be on the globe. In the next decades the U.S. will invest huge dollars in updating infrastructure. Southeastern is making big bets on this improvement in infrastructure.
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.