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.
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.
In other words, load up, gang.
This one’s going down like Torquemada in concrete slippers.
If Hashem wills it…
Many happy returns,