I sold 3/5 of my ELAMF today, so you can thank me, to some extent, for the bid getting down to $ 11.00. I plan to hold the remainder of my ELAMF for some time, however, I wanted to put some of the money to use elsewhere (ALLY @ $ 5.50).
I don't think today's action is anything to be concerned about. With earnings per quarter close to .30, I think it is just a matter of time before ELAMF moves forward. Now I have only those shares which I will feel comfortable holding in case ELAMF does fall futher in the short-term.
Regarding the Peso/dollar Ron writes:
<<V-SPEC - I believe you are wrong about the growth in the Mexican economy causing inflation. It is the inflation that depressed the Mexican economy and the Peso resulting in the opportunity for the current growth. IMO - Any inflation in Mexico would further devalue the Peso and expand opportunities for ELAMF.>>
It is inflation in Mexico that will make wages rise. When/if the wages rise, ELAMEX's payroll will go up, along with its other significant peso denominated expenses like its ultilities. If inflation were to continue long and hard enough, Mexico might be tempted to devalue its currency (if the normal trading of currencies didn't do the job). As you said, a Peso devaluation is great news for Elamex, when one happens. The events leading up to a devaluation would be painful, IMO.
In general, I think we agree, and at this time I don't think anything real unusual is happening with Mexican inflation. I believe it is not as bad as it was and is moderating (for them).
I'm glad, and surprised to see so much activity on this board. I'm glad to see all the activity ! |
