SIM = Grupo Simec = It is a Mexican company. They manufacture and sell iron and steel products. They export products to Central and South America, Canada, and the U.S. The stock is trading at $15.44/share, just off of its 52 week high of of $15.85. The annual low was $8.50. It does not pay a dividend and is strictly a growth play.
I usually don't like stocks that are near the high because I like having a lot of upside, but SIM is undervalued and Mexico is committed to increasing and improving their infrastructure. The stock also has a couple buy ratings and has most of the market share in Mexico. Its biggest clients are however the U.S. and China, believe it or not. We all know the economic boom that China is on and the amount of steel they require to build, I kid you not, a new city a week!
Furthermore, Simec is the second-largest producer of rebar in the world and the largest steel producer in Mexico. It has global exposure with 50% of its sales in Mexico and 50% outside of Mexico, which gives it some protection against country specific downturns. Overall, it is a good sound company that is likely to be a great long-term investment due to increasing demand & increased prices for steel.
Chart is below:
I am also going to post a great story from a book I read in my next post. Check it out.
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