Cementos Argos SA - Icesi
Financial Analyst – Giselle Torres Pabón
Cementos Argos S.A.
Investment Rating Market Outperform General Information: Argos is a leader in the Colombian cement industry, with 51% of market share, it is the fourth largest cement producer in Latin America with investments in Panama, Haiti and the Dominican Republic. It is the sixth largest concrete producer in the United States and also exports cement and clinker to 27 countries. Company Quick View Location: Medellin and Barranquilla, Colombia Industry: Cement industry Description: Argos has 14 cement producing plants on the American continent. Eleven of them are in Colombia and the rest are located in Panama, the Dominican Republic and Haiti. The geographic distribution of the plants in Colombia is ideal in logistical terms. In the northern area, there are 4 plants dedicated to export. Key Products & Services: Cement, concrete and lime. Web Site: www.argos.com.co Investors Information: •
On April 28th 2009, Cementos Argos S.A. issued bonds for 640.000 millon pesos; nevertheless, the issuance had a real demand of 734.835 million. Including this issueance, Cemargos S.A. completes $1,5 billion pesos placed in the market.
•
Fixed Assets Sale: Cementos Argos informs that through the sale of some coal mines, it will receive $308.5 million dollars which they will use to abate their liabilities from $1,200 to $900 million dollars and even more ensure resources to amortize debt due in 2009.
Stock analysis • As can be seen in the graph, the behavior of the stock’s price was negative going from $7,760 in October to $6,000 in December, in other words, the stock had a downfall of 22.88%. Compared to the market, IGBC, its performance has been of 12 points below the index up to April.
At the end of 2009, the expected price of the stock is $7.333 using an annual valuation method. A daily method was also done obtaining an expected Price of $6,885 for April 29th. As to the company’s total value, the price was $3.04 billion pesos, maintaining constant the number of stocks (Colombia follows the british standard where a billion is 1012).
Cementos Argos S.A.
Investment Rating Market Outperform General Information: Argos is a leader in the Colombian cement industry, with 51% of market share, it is the fourth largest cement producer in Latin America with investments in Panama, Haiti and the Dominican Republic. It is the sixth largest concrete producer in the United States and also exports cement and clinker to 27 countries. Company Quick View Location: Medellin and Barranquilla, Colombia Industry: Cement industry Description: Argos has 14 cement producing plants on the American continent. Eleven of them are in Colombia and the rest are located in Panama, the Dominican Republic and Haiti. The geographic distribution of the plants in Colombia is ideal in logistical terms. In the northern area, there are 4 plants dedicated to export. Key Products & Services: Cement, concrete and lime. Web Site: www.argos.com.co Investors Information: •
On April 28th 2009, Cementos Argos S.A. issued bonds for 640.000 millon pesos; nevertheless, the issuance had a real demand of 734.835 million. Including this issueance, Cemargos S.A. completes $1,5 billion pesos placed in the market.
•
Fixed Assets Sale: Cementos Argos informs that through the sale of some coal mines, it will receive $308.5 million dollars which they will use to abate their liabilities from $1,200 to $900 million dollars and even more ensure resources to amortize debt due in 2009.
Stock analysis • As can be seen in the graph, the behavior of the stock’s price was negative going from $7,760 in October to $6,000 in December, in other words, the stock had a downfall of 22.88%. Compared to the market, IGBC, its performance has been of 12 points below the index up to April.
At the end of 2009, the expected price of the stock is $7.333 using an annual valuation method. A daily method was also done obtaining an expected Price of $6,885 for April 29th. As to the company’s total value, the price was $3.04 billion pesos, maintaining constant the number of stocks (Colombia follows the british standard where a billion is 1012).
