CEMEX (MAJOR MEXICAN CEMENT CO.) TO HAVE STOCK SPLIT

The Bank of New York ^ | 10 July 2006

[MeneMeneTekelUpharsin]

Cemex, a major producer of cement, is scheduled to have a stock split (2:1) on July 21. Owners of record BEFORE July 14, 2006 will receive a 2 for 1 split of their shares. Cemex is a major worldwide supplier of cement. Here's the link to the split info (scroll down to "DR Event" link):

Click here for BNY info.

[MeneMeneTekelUpharsin]

So few people know about this company Cemex. They bought a huge U.S. cement company a little while back. They have mountains and mountains of raw material perfect for cement near their base of operations around Monterrey, Mexico.

[Lx]

Bump for later

[MeneMeneTekelUpharsin]

Very interesting company. They were trying to buy a stake in Gresik in Indonesia, but political pressure forced them to sell their stake. To me, that is VERY positive as it gets them out of a Muslim hotbed trouble spot.

[AmericaUnited]

Doing the splitting that US companies won't do.

[sionnsar]

Bush's fault... or was that global warming...?

[MeneMeneTekelUpharsin]

Doing the splitting that US companies won't do.

You about got that right. Problem with Cemex is, very few investors know much about the company. A lot of fund managers are not even familiar with the company and it is rock solid...no pun intended.

[Rakkasan1]

all that cement would build a fine wall.

[spokeshave]

There have been some very positive articles in WSJ over the past few years.....CX on a roll....

Pitty PEMEX can't emuate CEMEX growth and profits.

[jdm]

Cemex?

Isn't that the company that makes some sort of electronic thingy for televised opera?

Oh, no, wait... :)

[Eric in the Ozarks]

I think they bought Lone Star Cement.

[jiggyboy]

What's a ballpark figure for a yard of concrete these days? I guess that would vary by what part of the U.S. you're in, how many condos are going up, etc.

[ConservativeMind]

I seem to recall they have a lower cost for energy due to usage of tires, waste oil, etc.

Pretty smart business model. They should be allowed to compete with the US, but they have had to fight restrictions here.

[MeneMeneTekelUpharsin]

They should be allowed to compete with the US, but they have had to fight restrictions here.

If they were allowed to compete here, every U.S. cement company would go out of business. Every single one would close the doors.

[ConservativeMind]

I guess I wouldn't have a problem with that.

I don't exist to keep cement makers in business or to subsidize them with cheap energy.

[Eric in the Ozarks]

They're already here.

[winodog]

90 bucks and up

[jbstrick]

Looks like a sound company built on a strong foundation.

[MeneMeneTekelUpharsin]

Nice play on words. LOL.

[dljordan]

There's a large Cemex plant here in Longmont, Co. You just have to follow the caravan of illegals in the morning to find it.

[MD_Willington_1976]

The U.S. and Mexican governments have reached an agreement — expected to go into effect in the second quarter of 2006 — regarding the level of U.S. tariffs on Mexican portland cement imports into the United States. This report, released by Portland Cement Association (PCA) Chief Economist Ed Sullivan, provides the latest available information about the arrangement and its potential impact on U.S. cement supply.

The U.S.-Mexican cement import agreement will reduce the tariff on portland cement imports originating from Mexico from $26 per ton to $3 per ton and introduce regional quotas. The total volume of Mexican imports is capped at 3 million metric tons (mt) for the first year of the agreement.

http://cementamericas.com/mag/cement_us_cement_forecast_2/index.html


Reduced rates = more cement purchased from Mexico... When the rates were higher there was less cement imported, that's protectionism, and allowed the domestic cement companies to demand higher prices on a basic building material...

No wonder houses cost more for lower quality, protectionism!

[q_an_a]

Fernando Flores, the man who invented the e-mail program that became Groupwise, taught CEMEX how to build trust into their business model. He then showed them how having women sell concrete, like AVON ladies or the Christmas Club at the bank, would grow their business. Now they have women selling little bits of concrete to other women- for their homes, one room at a time, all over the world. CEMEX is huge and is an example of what could happen to their oil company if the goverment got out of the business.

[MeneMeneTekelUpharsin]

Great post! And thanks for validating my view that this is a top-notch company with potential.

[MeneMeneTekelUpharsin]

and is an example of what could happen to their oil company if the goverment got out of the business.

What would a lot of Pemex employees do that have been receiving salaries for doing nothing?

[MD_Willington_1976]

Just wish I had something to invest in that company...

[MeneMeneTekelUpharsin]

I think they did buy Lone Star Cement and another company as well. Here's confirmation of the split via Reuters:

Click here for Reuters item.

[Archie Bunker on steroids]

Whats the skinny on CALPINE? Its up to 40cents.

[Eric in the Ozarks]

I used to call on Lone Star when it was independent. They had a couple plants in Illinois. I delivered coal in barges to LaSalle on the Illinois river and trucked it in.

[MeneMeneTekelUpharsin]

Calpine is not a good investment. I thought it was, but that was back when I was clueless about quality stocks. Stocks below $5.00 are priced accordingly for a reason. Learned a lot of hard lessons.

[MeneMeneTekelUpharsin]

What business are you in, if I may ask?

[MD_Willington_1976]

I'm currently in the power/power infrastructure protection business. We are building several new buildings, mostly from prefab concrete panels.

We also provide power protection equipment that is used for large industrial processes, we have a manufacturing division located in the same city, Monterrey.

[MeneMeneTekelUpharsin]

Fellas...here's an interesting and positive development to add to the Cemex saga:

Click here for Financial Times story.