Arthur HeinmaaFomento Economico MexicanFMXTOP PICKApr 04, 2002

He suffered owning this for 5 years. Is up because near-shoring is costing less for US consumers while the Mexican government recovers. He was patient with this; it's up 60% this year.

Stock's performed well. Starting to reduce its position in Heineken, with more focus on core strengths. Its digital loyalty program is growing by leaps and bounds, revenue up 20% YOY. Benefitting from onshoring. 

They own beers, like Heineken, which they recently sold down to raise $3.5 billion. The market rewarded that. Also own convenience stores and Coca-Cola bottling (the biggest franchisee int he world). Will invest that cash in pharmacies and stores. A good way to get exposure to the US-Mexico border and Latin America, where they have stores. Can raise convenience store goods to offset inflation.

Largest Coca-Cola bottler in Latin America. Owns Heineken shares and owns the Oxxo store chain. Has added gas stations to their Oxxo stores. Doing well on a fundamental basis, but they're getting hurt by low pesos and global slowdown. Latin America usually gets hit first.

(A Top Pick June 7/16. Down 2.69%.) A perfect example for these 3 past Top Picks to be able to take advantage in the fall, for buying more of them to dollar cost average. With the Trump victory, the peso was getting crushed. Unfortunately, this company went down with it, simply because it was Mexican, even though they don’t do any business in the US. They are the Coca-Cola bottler outside of the US. They have OXO convenience stores and gas stations, and have gone into pharmacies all through Mexico, Latin America and south America. Their earnings are good, they are still opening gas stations, and have about 20,000 OXO stores, and now are adding gas pumps with them. Earnings are growing at a fairly decent clip.

(Top Pick Oct 5/16, Down 12.52%) He sold it as it approached $100, as he had said to do. This is the most fun, easy way to trade. It is a Peso play. It is ideal in the low $80s. He is waiting to see if the Peso confirms the uptrend and then he would buy it.

It is a trading stock. He bought around $89 and expects to sell it around $100. There is a really well defined trading range. It is a good looking trade.

(A Top Pick June 7/16. Up 0.45%.) Not just Coca-Cola. They have convenience stores under the Oxo brand, and have been buying pharmacies in both Mexico, Latin and Central America. Have also been buying gas stations.

The largest Coca-Cola bottler in Latin America, Mexico and the Philippines. They have been moving away from that low margin business and have 15,000 Oxo brand convenience stores and are attaching gas stations to them. Have started to buy pharmacies in Colombia and Chile. Earnings are starting to turn around because there is margin expansion. Dividend yield of 1.42%.

Emerging markets? Probably has just under 10% of emerging markets in his portfolio. One area he likes in emerging markets is Mexico, and this is a stock that he likes. Its main asset is Coca-Cola bottling in Latin America and the Philippines. Also, has convenience stores that have been growing double digits per annum, with a very high return on equity. Dividend yield of 1.5%.

Feels political situation in Mexico is improving. Government is focused on trying to provide growth in the economy to offset the drug trade. Stock hit a high at about $120 and started to fall back for a few reasons. Storms in September hurt their 3rd-quarter earnings and flooding pretty well stopped consumer spending. Government wants to initiate a doubling of the sugar tax and this one is the Coca-Cola bottler of Femsa, Coke and sports drinks throughout Mexico, Latin America and South America. Also, own the Oxo convenience stores. Have also been buying pharmacies. Sold their beer assets 5 years ago. Because the cash is not been expended, the dividend from 2009 has gone from $.36 to $1.64.

A bottler of Coca-Cola in Mexico, Latin America, South America and they just bought the Philippines operation. Also, owns the convenience stores under the Oxo brand in Mexico so they own the shelf space. A monopoly and this is where pricing power comes into play. Mexico has a young population that, instead of drinking water, they are drinking soft drinks. Dividend has been rising at a 30% clip for the last 5 years.