Screw the Fed: Viva Mexico!
The one homebuilder stock "the Fed can't crush," said Jim Cramer on Tuesday's Mad Money is Homex Development.That is because it's located in Mexico.
Cramer sees nothing but growth in Homex's future.
Sales have tripled in the past two years, and the company has become more profitable as measured by ROI.
Homex trades at 12 times 2006 EPS, which is in line with other Mexican homebuilders.
However, he said, Homex should trade at a premium because it is the only Mexican homebuilder listed on the NYSE, and its books are kept according to U.S. accounting standards.
Finally, Morgan Stanley recently initiated coverage of Homex with an overweight rating.
Why is Cramer so focused on Mexico?
"Mexico is self-sufficient in energy," he said.
Nothing but net.
<< Home