As the US economy languishes at eight percent unemployment investors look offshore for opportunity. Offshore in this case simply refers to outside of the USA. This is an important point because a great opportunity today is to invest offshore in Mexico. Mexico is currently hosting the G20 summit. The nation is negotiating to be a part of a Pan Pacific Trade Agreement, the Trans Pacific Partnership. Other members will include Australia, New Zealand, Malaysia, Singapore, Vietnam, Brunei, and quite likely Japan and Canada. Mexico already belongs to a free trade group, NAFTA, which links Canada, the USA, and Mexico. Mexico has a trillion dollar GDP and, like much of Latin America, a growing middle class. As trade between the USA and Mexico flourishes under NAFTA, Mexican businesses are taking over work that used to be outsourced to Asia. Mexico offers investment opportunity for those wishing to sell to the world and for those wishing to sell to the emerging Mexican middle class. That having been said how can an individual investor invest offshore in Mexico? What are some smart investing tips ?
Investing in Companies that Do Business in Mexico
Recently we wrote about how Marriott invests in Latin America . The multinational hotel chain plans to double its capacity in the Caribbean and Latin America over the next five years. What is attracting Marriott is the growth and spending power of the Latin American middle class as well as increased travel throughout Latin America. We also mentioned Nissan in the same article. The car maker has built factories and housing for employees in Mexico. Labor costs are $10 an hour for Nissan in Mexico versus $50 an hour in the USA. Nissan is so happy with the results that it provides medical care for its employees and home loans. The prospect of a lower cost of doing business and proximity to lucrative North American and growing Latin American markets drives many multinationals to invest offshore in Mexico.
Investing in Mexican Companies
Go local if you want to invest offshore in Mexico. Think American Depository Receipts. There are many Mexican companies listed on the NYSE. These can be bought and sold just like US based stocks. Mexico has a large and growing economy with lots of investment opportunity. Those opportunities are often best exploited by local companies. The same fundamental analysis that works for US stocks will work if you invest offshore in Mexico via Mexican companies listed on the NYSE. Here is the list. Where there is more than one listing for a company we have shortened the list to one.
Mexican Companies Listed on the NYSE
ALFA, S.A. DE C.V.
ALTOS HORNOS DE MEXICO, SA
APASCO, SA DE CV “A”
BANCA QUADRUM UNITS
BANPAIS “L” SHARES
BIPER, S.A. DE C.V.
BLOCKBUSTER DE MEXICO “B” SHARES 144A
BUFETE INDUSTRIAL CPO
CARSO GLOBAL TELECOM, S.A. DE C.V.
CEMEX, S.A. DE C.V. “A” SHARES
CIFRA, SA DE CV “B” SHARES
COCA-COLA FEMSA “L” SHARES
CONSORCIO ARA COMMON SHARES 144A
CONTROLADORA COMMERCIAL MEXICANA S.A.
CORPORACION GEO, S.A. DE C.V. 144A
CORPORACION INDUSTRIAL SAN LUIS SA GDR
DESC, S.A. DE C.V. SERIES C
EMPAQUES PONDEROSA, S.A. DE C.V.
EMPRESAS ICA “A” CPO
EMPRESAS LA MODERNA “A” CPO
FAR-BEN, S.A. DE C.V.
FEMSA, S.A. DE C.V.
FOMENTO ECONOMICO MEXICO S.A. DE C.V.
G. ACCION S.A. DE C.V. 144A
GRUMA S.A. DE C.V. “B” SHARES
GRUPO CARSO, S.A. DE C.V.
GRUPO CASA AUTREY SA DE CV
GRUPO CONTINENTAL COMMON SHARES
GRUPO ELEKTRA CPO
GRUPO FERNANDEZ EDITORES, S.A. DE C.V.
GRUPO FINANCIERO BANCOMER “B” SHARES
GRUPO FINANCIERO BITAL, S.A. DE C.V.
GRUPO FINANCIERO SERFIN
GRUPO GIGANTE, S.A. DE C.V. 144A GDR
GRUPO HERDEZ “B” SHARES
GRUPO IMSA UNITS
GRUPO INDUSTRIAL DURANGO “A” CPO
GRUPO INDUSTRIAL MASECA S.A. de C.V.
GRUPO INDUSTRIAL MASECA S.A. de C.V. “A”
GRUPO IUSACELL SERIES “D” SHARES
GRUPO MEXICANO DE DESARROLLO “B” SHARES
GRUPO MINSA, S.A. DE C.V. 144A
GRUPO POSADAS “A” 144A
GRUPO PYPSA “B” SHARES
GRUPO RADIO CENTRO, S.A. DE C.V.
GRUPO SIDEK “B” SHARES
GRUPO SITUR “B” SHARES
GRUPO SYNKRO “B” SHARES
GRUPO SYR, S.A. DE C.V.
GRUPO TELEVISA, S.A.
GRUPO TRIBASA COMMON SHARES
HILASAL MEXICIANA, S.A. DE C.V.
IEM SA (INDUSTRIA ELECTRICA DE MEXICO)
INDUSTRIAS BACHOCO UNITS
INTERNACIONAL DE CERAMICA “B” SHARES
JUGOS DEL VALLE SA DE CV
KIMBERLY CLARK DE MEXICO
NADRO S.A DE C.V. “B” SHARES
PEPSI-GEMEX S.A. DE C.V.
SEGUROS COMERCIAL AMERICA, S.A. DE C.V.
TELEFONOS DE MEXICO “A” SHARES
TRANSPORTACION MARITIMA MEXICANA “A”
TUBOS DE ACERO DE MEXICO, S.A.
TV AZTECA, S.A. DE C.V.
VITRO, S.A. DE C.V.