Mexico Closed End Fund Stock Recommendations (Mid 2024)
Last year we wrote a post covering the main holdings of Mexican closed-end funds.Mexico Closed End Fund Stock Recommendations (Early 2023)) as a potential way to generate revenue by leveraging trends related to nearshoring and China.
But as we mentioned Posted on June 10thRecent Mexican elections have somewhat strengthened the left’s rule.
🇲🇽 Five Challenges Facing Mexico’s Claudia Sheinbaum (FT) $ 🗃️
Large budget deficits and record murders are top concerns for the president-elect
fiscal deficit
Organized crime and violence
Pemex’s precarious finances
Relations with the United States
Following López Obrador
🇲🇽 Mexican peso takes hit in election aftermath as leftist party consolidates power (FT) $ 🗃️
As investors digest the vote, the currency is set to post its worst week since the pandemic began
“This reform is concerning because it undermines the rule of law in Mexico.” “This could contaminate the real economy,” Schiller said. “Fear leads to caution, Business owners can now choose to pause investment projects.”
🇲🇽 Mexican elites struggle to understand the left’s landslide election victory (FT) $ 🗃️
and Mentioned on MondayNow there is added uncertainty or concern about the country’s rule of law.
🇲🇽 Mexico begins ‘impossible’ process to elect 7,000 judges (FT) $ 🗃️
🇲🇽 Why Mexico’s Impending Judicial Reorganization Has U.S. Businesses Nervous (WSJ) $ 🗃️
A multi-billion dollar foreign investment plan involving the United States and its biggest trading partners has been put on hold.
Another $18 billion in private investment is at stake as Mexico seeks to meet growing industrial electricity demand. Supreme Court Blocked Policy Initiatives It could disrupt Mexico’s electricity sector by violating the U.S.-Mexico-Canada Agreement. Some investors fear that the newly elected court will approve of them.
Our Posted on August 1, 2023 (among other posts) I covered a podcast interview with a fund manager who talked about evidence of nearshoring (something everyone talks about but still needs proof of) by going to a city in northern Mexico. Monterey And we’ve seen tremendous growth, for example: The industrial warehouse sector is 100% leased.
But as Zerohedge pointed out this week, that could throw another monkeywrench into certain e-commerce companies’ nearshoring plans.
🇲🇽 “Change the Math”: Biden’s Tariff Crackdown Throws Amazon and Walmart’s Cunning China Plans into Disarray (Zero Hedge)
Meanwhile, some retailers have moved their warehouses to Canada or Mexico.. From there, they can quickly and legally ship items to the United States duty-free when orders come in. They will take more American jobs.
As the Biden administration tightens restrictions on minimal shipments from China, There are growing concerns that imports from neighboring countries will surge as companies seek new evasions.
And it’s not like anyone hasn’t noticed that China and other countries are taking advantage of NAFTA’s successor agreements and setting up warehouses or assembly centers in Mexico to avoid tariffs and other political issues, including China’s.
That said, in this post we’ll take a closer look at all our holdings for the following three: Mexico-focused closed-end fund:
Here’s a look at the recent performance of three closed-end funds during the COVID period (charts linked back to Yahoo! Finance):
And the long-term outcomes for all three are:
As you can see from the chart covering the pre- and post-COVID periods, there was a difference in performance. MXE and MXF That Perhaps it will be explained as follows Stock selection With Investment philosophy or strategy Differences. but, Cuba We also invest in US stocks (those headquartered in Florida or operating in the Caribbean, e.g. cruise ship operators, resort operators, etc.) and those headquartered in other Caribbean countries.
We also have inventory Mexico ADR On our website Plus here’s a screenshot List of Mexican ETFs On our website:
If we add two unleveraged Mexican ETFs, we get a chart like this:
In recent years, the Mexican peso has become slightly more stable.
Even without the recent political uncertainty, I think the peso will remain solid or strengthen at least in the long term as Mexico continues to attract capital for nearshoring activities (with remittances from Mexicans working in the U.S. or Americans living in Mexico).
With that in mind, here are some key Mexican economic charts to consider:
Economic charts like this are more commonly available in: Search Mexico ~ in Trade Economics…
For potential Mexican stock picks (also holdings of CUBA, MXE and MXF) and to make your life easier, this post includes:
Which funds own the stock.
A brief description of your stock holdings, including links to the IR page and stock quotes on Yahoo! Finance or Finviz (for US listings).
A link to a Wikipedia page (if it’s worth it…)
Price/book value ratio (most recent quarter) and expected or trailing P/E, and dividend yield linked to Yahoo! Finance statistics page.
The latest long-term technical charts are linked from Yahoo! Finance.
And as always, this post Provided for informational purposes only. (and to make your life easier by providing relevant information, links and charts). This does not constitute investment advice and/or recommendation…
memo: The full list of holdings on the fund’s website or in SEC filings may be a bit out of date, but the holdings are probably not significantly changed. If a new position is opened for a completely sold stock or a completely new stock:
Herzfeld Caribbean Basin Fund, Inc – Monthly Portfolio Investment Report – Submission Date: 2024-08-29 (Report date: 2024-06-30)
Mexican Stock and Income Funds – Portfolio holdings as of the end of the most recent quarter – June 30, 2024
Mexico Fund – Monthly Portfolio Investment Report – Submission Date: 2024-09-11 (Report date: 2024-07-31)
(Mexican Fund)
Alpha SAB de CV (BMV: Alpha Ah) is involved in Petrochemicals and synthetic fibers, refrigerated foods, and telecommunications In Mexico, the company manages the following businesses:
Sigma – A leading multinational food company that produces, markets and distributes cooked meat, fresh meat, dried meat, cheese, yogurt and other chilled, frozen and plant-based foods.
Alphek – Leading producer of PTA, PET, rPET & EPS in America and producer of polypropylene in Mexico. The company operates in two business segments: Polyester and Plastics & Chemicals in America, Europe and the Middle East.
Wikipedia
Price/Book Value (Recent Quarter): 2.47
Expected P/E: 8.10 / Annual Dividend Yield Outlook: 4.00% (Yahoo! Finance)
(Mexico Stock & Income Fund, Inc / Mexican Fund)
Alpec SAB de CV (BMV: Alpeca / turn off: 27A /OTCMKTS: AlpKef) Alpek is a leading producer of PTA, PET, rPET and EPS in the Americas and produces polypropylene in Mexico. Alpek operates in: Two business divisions: Polyester and Plastics and Chemicals, Americas, Europe and Middle East.
Wikipedia
Price/Book Value (Recent Quarter): 0.96
Expected P/E: 15.22 / Annual Dividend Yield Outlook: 8.92% (Yahoo! Finance)
(Mexico Stock & Income Fund, Inc. / Mexico Fund)
ALSI SAB de CV (BMV: Alci / turn off: 4FU /OTCMKTS: Alsf) am Leading restaurant operator ~ in Latin America and Spain Global brands such as fast food and coffee shops (Starbucks)Casual and family dining segment.
In the company Diversified portfolioIt owns brands such as Domino’s Pizza, Starbucks, Burger King, Chili’s, PF Chang’s, Italianni’s, The Cheesecake Factory, Vips, Vips Smart, El Portón, Archies, Foster’s Hollywood, Gino’s, TGI Fridays, Foster’s Hollywood Street, Ole Mole and Corazón. The company operates over 4,000 stores. Mexico, Spain, Argentina, Colombia, Chile, France, Portugal, Netherlands, Belgium, Luxembourg and Uruguay (see: Alsea (BMV: ALSEA / FRA: 4FU / OTCMKTS: ALSSF): Strong Starbucks and QSR Growth Confirmed)
Wikipedia
Price/Book Value (Recent Quarter): 6.13
Expected P/E: 10.54 / Annual Dividend Yield Outlook: 2.28% (Yahoo! Finance)
(Herzfeld Caribbean Basin Fund, Inc / Mexico Equity and Income Fund, Inc / Mexico Fund)
America Mobil SAB de CV (NYSE: AMX) ~is that 7th mobile network operator It is the leading telecommunications service provider in Latin America in terms of number of subscribers.
Wikipedia
Price/Book Value (Recent Quarter): 2.39
Expected P/E: 9.29 / Annual Dividend Yield Outlook: 3.16% (Yahoo! Finance)
