January 29, 2017: Cemex has ran up a bit too fast. Let’s sell and book profits for a 16.69% win and congratulations if you were able to make money on this stock.
January 15, 2017: Hot stock tip sent in from the GuerillaStockTrading website that if Trump builds the wall with Mexico they will need a lot of cement. CEMEX has cement facilities all along the border and on both sides. I like the catalyst and thanks to the person who sent in this hot stock tip. I do not hold this stock in my personal trading account as of January 15, 2017 and the publishing of this report.
January 9, 2017: CEMEX announced that its indirect subsidiary, Sierra Trading), will present a change and variation notice making an amended offer to the offer and take-over bid that was submitted on December 5, 2016 to all shareholders of Trinidad Cement Limited, a company publicly listed in Trinidad and Tobago, Jamaica and Barbados, to acquire up to 132,616,942 ordinary shares in TCL, which together with Sierras existing stock ownership in TCL of approximately 39.5%, would, if successful, result in Sierra holding up to 74.9% of the equity share capital in TCL.
Under the Amended Offer, Sierra will offer TT$5.07 in cash per TCL share and, except for shareholders of TCL in Barbados, shareholders of TCL will have the option to be paid for their TCL shares in TT$ or U.S.$. Full acceptance of the Offer, as amended by the Amended Offer, in TT$ would result in a cash payment by Sierra of approximately TT$672 million (U.S.$101 million). The Revised Offer Price represents a premium of 50% over the December 1, 2016, closing price of TCLs shares in the Trinidad and Tobago Stock Exchange.
Among other conditions, the Offer, as amended by the Amended Offer, will be conditional on Sierra acquiring at least an amount of TCL shares that would allow CEMEX, for financial reporting purposes, to consolidate TCL. Unless extended, the Offer period, as amended by the Amended Offer, is expected to close on January 24, 2017, at 3.00 p.m. Trinidad and Tobago time. Sierra does not currently plan to extend the Offer period after January 24, 2017. All other terms and conditions of the Offer not modified by the Amended Offer remain unchanged.If the Offer, as amended by the Amended Offer, is successful, TCL will continue operating as usual. Additionally, TCL will be maintained as a publicly listed company on the Trinidad and Tobago Stock Exchange with the benefit of a strong local shareholding together with the enhanced benefit of proven management and operational expertise from CEMEX.
December 10, 2016: CEMEX discloses in a filing the SEC issued subpoena related to Foreign Corrupt Practices Act (FCPA) investigation.
December 6, 2016: CEMEX announced today significant progress in its initiatives to bolster the company’s path to regain an investment-grade capital structure.
These initiatives include several transactions and efforts intended to strengthen CEMEXs EBITDA and cash flow generation as well as to reduce debt, which is expected to dampen the effects of continued market volatility. CEMEXs key financial and strategic milestones are the following:
– Year to date, CEMEX has announced divestments of close to U.S.$2 billion, about half of which have been completed and the rest are expected to close by early next year. As such, CEMEX will be able to meet its U.S.$1.5 to U.S.$2 billion 2017 asset disposal target ahead of schedule.
– With the proceeds from asset divestments, as well as free cash flow generation and cash on hand, CEMEX has reduced total debt plus perpetual securities by more than U.S.$2 billion year to date, in line with this year’s target. Taking into account this reduction in debt, as well as expected additional debt payments before year end, CEMEX is on target to reach its leverage ratio target of about 4.25 times by the end of this year.
– With the proceeds from pending asset divestments, as well as continued favorable free cash flow generation, CEMEX is also well on track to reach its debt reduction target of U.S.$3 to U.S.$3.5 billion by the end of 2017.
– CEMEX is also currently on course to achieve its initiatives to increase free-cash-flow by U.S.$670 million by the end of this year. Also, the company expects to meet its cost-and-expense reduction target of U.S.$150 million which has contributed to CEMEXs improvement in profitability during 2016.
– CEMEX has increased its flexibility to optimize its use of proceeds from asset sales and free cash flow by enlarging its revolving credit facility under its facilities agreement and now has no significant maturities until March 2018.
CEMEX Stock Chart
The Finviz screener settings for CEMEX: Sector Industrial Goods, Forward P/E Under 20, EPS growth this year 100% – 105%, EPS growth next year Over 15%, EPS growth qtr over qtr 755% – 765%, Institutional Transactions Positive (>0%)
CEMEX is a global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world and maintains trade relationships in over 100 nations. The company has 43,000 employees worldwide.
CEMEX locations in the US and Mexico are below. CEMEX sites on both sides of the border would make it an ideal supplier of cement for the massive US/Mexico border wall.