Monday, March 11, 2013

Jim Cramer Thinks Mexico is a Great Buy: Top Mexican Stocks

On March 1 on Jim Cramer's Mad Money TV Program, Cramer said "I think Mexico is a great buy." He even mentioned that the iShares MSCI Mexico Index ETF (EWW) is a buy and he owns it in his charitable trust. Mexico has the 11th largest nominal GDP by purchasing power parity. According to Goldman Sachs, Mexico will have the 5th largest economy in the world by 2050.

If you are an investor interesting in investing south of the border, there are plenty of Mexican stocks to choose from that trade in the US, with more than half a dozen paying dividends, according to the free list at

One example is Industrias Bachoco (IBA) which was founded in 1952. It is involved in the in breeding, processing, and marketing of chicken, eggs, swine, and animal feed. The stock trades at 9 times earnings and pays a yield of 1.5%. Revenues for the latest reported quarter were up 25%. The company has $400 million in cash amounting to $8 a share, and $214 million in total debt.

América Móvil (AMX) provides telecommunications services primarily in Latin America, the United States, and the Caribbean. The stock trades at 11 times earnings and sports a yield of 1.4%. Earnings for the latest quarter were down 9.4%, however, revenues were up 8.7%. The company was founded in 2000.

Grupo Televisa (TV) has a great stock ticker symbol. It produces television programming and broadcasts through several channels in Mexico and the United States. It trades at 24 times earnings and pays a small yield of 0.4%.

Of course, if you want diversification, in addition to EWW, you can also invest in closed end funds such as The Mexico Fund (MXF) and Mexico Equity & Income Fund (MXE).

For a list of all the Mexico stocks that trade in the US, which includes the PE ratio, yield, and business, go to

Disclosure: Author didn't own any of the above at the time the article was written.


Pictured is the Bolsa Mexicana (Mexican Stock Exchange)

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