NYSE:CX

Cemex SA (CX)

12.58
-0.15 (1.18%)
as of Jun 22, 2026, 8:00:00 pm Market Open.
11 watching
0
DON'T BUY
Mexican cement company. This was one of the leading emerging market stocks. Stumble very badly due to over expansion ahead of the global financial crisis. Has recovered somewhat. Until it is able to unload the acquisitions made, particularly in the US, this is likely to be dead money.
DON'T BUY
Sold his holdings in 2008. Cement industry is very fragmented. Debt level is enormous. When US housing recovers, this stock will do very, very well.
DON'T BUY
Mexican cement company. This is a difficult environment for cement companies, especially in the US where there is not a lot of growth. Debt to EBITDA is about 7.2 times and they have to bring it down to 7 by the end of the year. Made a bunch of acquisitions, which they still have to work through.
DON'T BUY
(Market Call Minute) Too highly valued
PARTIAL BUY
Sold in 2008 because of concerns on debt maturities and refinancing needs for a 2007 acquisition. Managed quite well. Good play for infrastructure as well as an emerging market stock. Feels emerging markets are somewhat overvalued. Suggest you scale into a position over the next 3 to 6 months.
SELL
Prior to meltdown, they were on an acquisition binge. They have been selling assets to raise cash. He sold a year ago because of balance sheet impairment.
DON'T BUY
Mexican Cement company. Over long term there is good growth potential around the world. Well run, but high estimates about making numbers this year. Would affect debt coverage so he wouldn’t touch it.
DON'T BUY
Did own but exited because of a possible refinancing issue. Doesn't think this will be the case but there is a very high risk that they will have to issue some common equity to shore up the balance sheet.
DON'T BUY
Will be a long-term beneficiary of spending being done by governments. Challenge in the near term is their highly levered balance sheets. Would prefer CRH (CRH-N), which has a better balance sheet and good valuation.
DON'T BUY
Sold this a couple of months ago because they had refinancing problems. Their cost of capital right now is greater than 15%. Their markets are in US, Spain and Britain and are not doing very well in the housing markets.
SELL
(Market Call Minute.) Infrastructure company but has too much debt and has taken on one too many acquisitions. A lot of its projects are being put off.
DON'T BUY
Mexican cement company. Very consolidated industry. There are issues in Europe as they questioned the pricing. With governments putting in infrastructure spending, most of it requires cement. This is not the name you would want, as its balance sheet is very stretched. Generates good free cash flow, but most of it goes to the banks for the next couple of years.
DON'T BUY
Acquisition of Rinker Group 2 years ago was fine, but now that credit windows have closed, they will have to roll over $6 billion of debt next year. All of their markets, US, Europe and Spain have begun to fall. Last quarter they took most of their existing cash flow to pay down about $1.5 billion of debt, but still have a huge amount to come up with. Interest rates, relative to the Mexican peso, are going up. He has his holdings under review right now.
HOLD
(Market Call Minute.) Not his favourite.
PARTIAL BUY
Will be able to maintain its standing as it is not in a credit crunch. The global slowdown in housing affected the stock. Operating margins are still in the teens so have plenty of free cash flow to continue to pay down debt. Historically, cement companies get cheap at around 5 to 6 times earnings and expensive around 12 times. They are trading around 6X right now. In this environment, by a half position.
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