Shares of FEMSA (FMX),
a large Mexican consumer conglomerate, are always going to twitch with
concerns about Mexico's economy (including the exchange rate with the
U.S.), but management has demonstrated over the years that it knows how
to build value for shareholders. Recent endeavors like drugstores and
gas stations will take time to mature, but the underlying growth story
for the company remains intact.
I continue to
believe that $105 to $115 is a good fair value range for the ADRs and
that opportunities to buy below $100 should be considered by investors
who want some exposure to emerging market (especially Mexican) consumer
spending growth. Although 2018 could be a little more challenging due to
political issues, I believe high single-digit growth potential
continues to support a healthy outlook for double-digit long-term
returns.
Read more here:
FEMSA Continues To Offer Attractive Value
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