I honestly have mixed feelings about writing on stocks like FEMSA
FEMSA's second quarter was another solid performance. Sales rose 13%, EBITDA rose almost 9%, and profits were up 22%, as the company saw growth in all three of its operating segments.
Revenue growth was strongest in the company's Oxxo convenience store business. Revenue grew 23% overall and was up nearly 10% on a same-store basis, with more than 4,000 stores now open. Those are comps that even fast-growing Pantry
Performance on the beverage side was not quite as robust. Sales at Coca-Cola FEMSA
All in all, I'm still quite comfortable holding these shares, and I continue to believe that they're undervalued. Unlike Anheuser-Busch
For Fools who don't have a lot of experience in investing in foreign companies, FEMSA might be a good place to start. The company operates businesses that are easy to understand, and it's relatively shareholder-friendly. In fact, I'd go so far as to say that FEMSA offers up better and more detailed financial information than many American companies. On the flip side, it still operates in an emerging market, and when investors turn sour on that theme, this stock gets hit, too. If you can look past that volatility, though, this could prove to be a very interesting long-term opportunity.
For more Foolishness on tap:
- A Rocky Road for Molson Coors
- Is Anheuser-Busch Turning the Corner?
- Constellation Brands a Little Flat
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Fool contributor Stephen Simpson owns shares of FEMSA and SABMiller, but has no financial interest in any other stocks mentioned (that means he's neither long nor short the shares). Anheuser-Busch is a Motley Fool Inside Value pick. The Fool has a disclosure policy.