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12-21-2005 CX - Cemex .

CURRENT PRICE: $60.60 ($8.20)

TYPE OF PLAY: TECHNICAL ANALYSIS/EARNINGS GROWTH

Cemex is a leading global producer and marketer of quality cement and ready-mix concrete products. They have business ranging in the Americas, Europe, Asia, Africa and the Middle East. On December 17, they announce yearly quarter over quarter earnings growth of over 60%, and stated that they feel business is still growing strong. Another key angle for this stock is the enormous highway and road construction bill that has been making its way through Washington. Mexico is often tasked to provide raw materials when the U.S. needs them cheaper. This will be the first time we also track an option play for the more risk averse. We will be using CX DK the April 2006 call option at the $55.00 strike price.

LINKS FOR FURTHER READING:
Earnings release
CX homepage
SEC filings for CX
General CX statistics


1/10 UPDATE: The U.S. is close to an agreement in which Mexico will be paying U.S. import duties of between $3 and $5 per metric tonne of cement entering the United States, compared with $59 currently. If this Reuters story turns out to be 100% factual, it would be very bullish for CX.