Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (32506)	10/16/2008 5:09:10 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78704

IMHO, CX dropped to $4.5 based on the fear of derivatives and debt. I don't know if Mexico slowdown is reflected in the stock price though. I agree that there are issues, I still think the company is way undervalued. I added some recently near current price. My next step would be adding below $5ish.

To: Paul Senior who wrote (32506)	10/16/2008 7:58:29 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78704

re CX, the US$ debt is pretty scary with almost all currencies now falling against the US$ that could get one ugly bloodbath on the balance sheet. Took a quick look at CX valuationwise: CX 5B$ market cap 20B$ debt, 5B$ EBITDA = EV/EBITDA about 5 LaFARGE (LG.PA) 10B$ market cap, 15B Euro Debt, 5B Euro EBITDA = EV/EBITDA about 5. Looks like CX & Lafarge trades at a similar valuation as per EV/EBITDA but at lower gearing. Of course the devil is in the details. Personally I would like to see at least one of CX balance sheet under the new reality before committing capital.