Gresik sales up slightly in 2009

Grupo Financiero Banamex dropped its recommendation of small-cap cement (Moctezuma and Grupo Cementos Chihuahua) by 2010 in the stock market by the lag in the beginning of his new production capacity in the first case and by slower growth this year and especially since it is expected the final resolution of its financial restructuring in the second, El Mexicano.

In its weekly report equity, the institution noted that its recommendations to reduce these companies Moctezuma (CMOCTEZ) to Hold / Medium risk Buy / Medium Risk, and Grupo Cementos de Chihuahua (GCC) to Sell / High Risk from Hold / High Risk . However, increases target prices for both companies (Moctezuma and GCC to 40.50 pesos to 51 pesos) to reflect higher valuations of comparable companies in the cement and building materials, which more than offset the lower estimate for 2010 of both companies.

Considers both Montezuma and GCC have had a positive performance in the stock market, with increased shares of 77 percent and 64 percent against 43 percent of the stock exchange since 13 April 2009, after the market reached their lowest and start the hike. This implies that most of the expected yield we see for both companies in the short term, and is built into the share price, delimiting its upside potential.

In the case of Montezuma, in addition to good performance since the recovery, our new recommendation is supported by lower estimates, since it holds part of the growth expected in 2010 by the lag in the beginning of his new production capacity. The action must behave slightly better than the market in the short term, at least until its new plant starts operations.