Grupo Aeroportuario del Sureste (ADR)
With the Mexican economy growing at around 3.5% in 2012, it’s not surprising that airport traffic was up for the year. Tourism is one of the biggest sources of foreign currency for Mexico. As the Mexican economy's growth is expected to be close to its potential, at 3.5% in both 2013 and 2014 (IMF WEO report April 2013), investing in airport operators is an opportunity to more »
The market is long Mexico. During the first three months of this year, the country has led the Latin American pack for share sales and M&A activity. The reasons are to be found in Mexico's renewed growth prospects. The IMF expects the country to grow by 3.5% this year and next as Mexico’s export-led economy benefits from an increasingly active US economy. According to Dealogic, in more »
Years ago the Mexican government decided to privatize a portion of its infrastructure. A collection of privatized airports are publicly traded in the U.S. and they have proved to be quite profitable investments over the past decade. The airline industry has a bad name due its flagship carriers' continual problems. These Mexican airports are not well-known, but they offer the stability and growth potential that is hard to find more »
[Continued from part 7]
Nick Slepko: How about Grupo Aeroportuario del Sureste (NYSE: ASR)? They run several airports in southern Mexico, and their stock has done well even during the recession. How did they get on your radar?
Tom Herzfeld: We got them as a result of an arbitrage. It was more »