בס״ד

‘Cement Shoes’ Found on Rio Grande Corpse! (CX)

Posted on June 3, 2021

Today’s trade is straight pasta and tomato sauce.

Like mama used to make.

Nothing complicated or confusing about it.

Not expensive, either.

Just mix the ingredients, heat and serve.

—————————————————–

Underlying today’s trade is Mexican cement and ready-mix concrete retailer CEMEX (NYSE:CX), an outfit with 2000 outlets in roughly 600 cities in upper and lower America.

Fundamentally –

  • The company has no P/E,
  • EPS for the last five years is negative 60.50%,
  • Sales for the last five years are negative 43.20%,
  • Dividend yield is a reasonable 1.20%, and
  • Price to Book is equally so at 1.42.

In the stock’s favor is the level of insider ownership, which stands today at a wildly high 60%, and makes shorting CX somewhat of a gamble.

That said, the shares currently look poised for a pullback.  Even analysts are suggesting that next year’s earnings will contract by 2.73%.

And that cements it.

Despite infrastructure hype and a rebound in the housing market, in our estimation, CX is about to get riddled by the short-sell cartel’s AK-47s.

Have a look at the daily chart –

In other words, load up, gang.

This one’s going down like Torquemada in concrete slippers.

If Hashem wills it…

Many happy returns,

Matt McAbby

 

2 responses to “‘Cement Shoes’ Found on Rio Grande Corpse! (CX)”

  1. Matt McAbby says:

    bs’d
    Hi Jim,
    Thanks for writing.
    Trade looks OK from our end.
    Sell the CALL spread for a credit (i.e., Sell the 8 CALL and buy the 9 CALL). Then use the funds to buy the 9 PUT.
    Feel free to write us at mattmcabby@ajewandhismoney.com if you have further Qs.
    All the best,
    Matt

  2. Jim Gosnell says:

    Thanks for the reply. My fault, I just misread the trade order at first. I saw my mistake after I sent the email to you guys.

Leave a Reply

Your email address will not be published. Required fields are marked *