Today's stock selection:
Reference: S&P The Outlook
As one of the largest homebuilders in Mexico, Desarrolladora Homex has geographically diversified operations
and access to capital. It has also been adding to land holdings in a low-penetrated market.
The fundamentals of the Mexican mortgage industry remain surprisingly stable to support the country’s
housing market, despite the problems in the U.S. financial and housing
industries.
Our 2008 operating earnings estimate is $3.65 per American Depositary Share (ADS). Applying a P/E of 17, in line with companies with similar growth profiles, to our
2009 estimate, we arrive at our 12- month target price of $75.
Risks to our recommendation and target price include a weakening
Mexican economy.
http://astuk-virtuallystocks.blogspot.com/
$69.25 (05/30/08)
