I deal with Mexico for years so follow the Peso closely and right after the 2016 election the Peso which traded 10-14 jumped to 25-26 (I was too slow to short) and then settled in the low 20s before bleeding down to 17-19. When COVID hit and the peso hit 25 I was not going to miss that again and start using the /6M futures to "go long the peso" wiht the analysis that when shit settles down it will have to make its way back to 20 at least and enxt target is 17. I rolled from Mar 4x already scaling up a bit and now holding MAR 2020 futures for the ride to 17 hopefully. It had to be a long term play given the volatility but the economic situation could not keep Peso down to 23-25. Not sure how Mexican stocks are doing but CEMEX does a lot of jobs outside of Mexico to so if government spending picks up for infrastructure they should see a nice boost.
Damn..I missed the boat on CEMEX... could have had it at $2 a share....stock was $9 two years ago so still 80% gain possible but look at that run up.....
Somebody knows something. Look at that volume spike on 12/1. Open interest on the calls has basically went zero, to 94,000
Must be new bidding somewhere in Mexico for major contracts. That would be my guess leading to expected rise in stock when news is announced. No other way for CEMEX to get a large boost really. I know there was a large airport project in Mexico City that was halted..or perhaps in another country. I know in panama cemex provided all the cement for the highway projects.
Hmmmm. A 2 Billion jump in market cap in month though? That's not new contracts. Maybe there's a buyer. China?
Now you making me look into some lottery ticket calls..... But the stock was valued in the high teens so it is still undervalued from 2 years ago.....global economy coming back by next summer could mean a big jump and future buying ahead of news? I will watch this.
Huge run up since March.... thinking of heding some of these gains with SDS (Ultra short SP500). Add some JUNE Calls on SDS because I like leverage and dont like where the SPY or ES calls are priced and we are due for some minor correction after all this vaccine and election business.
OK I grabbed some shares after looking at 3rd Q earnings. Lots of activity jump due to COVID reopning and government starting public works again. They sell cement in mexico as well as U.S., Central and South America and Europe and Asia. Truly global. If trend continues then stock could see $9 by the spring. Grabbed a few thousand shares and if it slides in any pullback I might add more. Might send you a nice $25 gift card to SBUX if it works out haha