| | Gruma S.A.B. de CV (GPAGF) - A possible Food stock value Buy
I mentioned this company in Oct 2011 (trading at $1.75/share) but never started a position. Based on yesterday's closing of $13.19.share, it has booked an outstanding 47% annual growth. They even pay a modest dividend once per year.
Gruma, S.A.B. de C.V., through its subsidiaries, produces and sells corn flour, tortillas, and other related products. It operates through Corn Flour and Packaged Tortilla Division, Corn Flour Division, and Other segments. Produces and commercializes corn flour and tortillas in the United States, Europe, and China. In the United States, Gruma Corporation is headquartered in Irving, Texas. Gruma Corporation in China is based in Shanghai, and made it the first tortilla producer in that country. It has a production capacity of 15,000 tonnes (14,800 long tons; 16,500 short tons) of wheat tortillas, 7,000 tonnes (6,890 long tons; 7,720 short tons) of corn tortillas and 6,000 tonnes (5,910 long tons; 6,610 short tons) of snacks. In Asia, the company also has distributors in Japan, South Korea, Singapore, Hong Kong, Thailand, Philippines and Taiwan.
Mexico tortilla maker Gruma profit jumps(Not so good when you convert those peso's back to $US.)
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My thought was that as the $US gets stronger compared to the Mexican Peso ($US 1.00 = 19.62 peso), this could be a good currency for value trade. Use strong $US to buy a Mexican Peso denominated company. Also, their main input, corn flour is at a multi year low. Forward PE < than 1X and only 2x annual net income = LT debt so not much leverage.
GPAGF may/could have better upside than SENCA w/ a similar risk/reward entry point.
EKS |
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