MONTERREY, Mexico, Feb. 5, 2015 (GLOBE NEWSWIRE) — Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (OMAB) (BMV:OMA), reports that terminal passenger traffic at its 13 airports increased 12.2% in January 2015, as compared to January 2014. Domestic traffic increased 11.5%, and international traffic increased 15.8%.
Look I understand; Mexico has a bad rapport…mostly because they can’t seem to maintain laws, their public officials double deal with the mobs to decapitate college kids, and mostly they are a third world country.
But in between being a third world country, they get to be neighbors with us. And as long as they know better than to have relations with dirty commies, there’s no trouble here.
And on that subject, it’s not like Cancun is Mexico anyway. Cancun is America. We just call it Mexico so we can duck labor laws and hide out for a bit. And hang out with Jesse Ventura (who is bat shit crazy, by the way).
So go ahead and ask yourself, who benefits the most from a strong dollar, super cheap fuel (driven by an entire domestic oil boom going bust right above them), and American labor recovery.
The answer my friends is a Mexican airline company. One that has its foot in every stage of the business (from the travel all the way right down to the vending machine you buy from before loading for the trip) like OMAB does.
OMAB is distributing 8% right now, and growing at double digits. Strong currency will make travel for Americans cheap. Think back to our recent history; or even our less recent history when Americans were buying up French property like it was nothing, then burning francs in their faces when they protested.
Dropping the “arrogant American, foreigners are chimps” act, Mexico is making strides to get their act together. Honestly the last chip that needs to fall in place is for the American drug “war” to end (who the shit starts a war with an inanimate object? Crazy people, that’s who…). If that goes, then pretty much the entire purpose and life force of the Mexican mafia dies with it; you would watch Mexico make leaps and bounds forward.
Right now they’re too busy demanding American citizens be forced to disarm (ha…ha ha…hahahah ahahaha…) to make an effective plea to the public. America would be receptive to the “your prohibition movement is getting our people killed” argument if they stopped targeting constitutionally enshrined freedoms and pissing everyone off.
There are many reasons I like OMAB, which range from their performance to their pricing and also their positioning. They have a good lock going on travel around America and Canada’s favorite playground – locations spanning the Gulf Coast to the islands in the center – and increasingly I think you’re going to see the Central and South America’s become more and more important.
The United States have ignored the Southern continent zones for too long. We’re busy playing around in an increasingly less relevant desert for oil that we’re brimming with, and meanwhile a huge resource laden land mass much closer to us is free to be overrun with Bolshevik wannabes. With the self-imposed collapse occurring in several of these places right now, the time is right, and the mood of the resident nations is looking for a change. The U.S. and capitalism can be there so long as we strike good deals and keep the playing field fair and level.
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Best and funniest post you have
written in years .As an aside I will look
into $OMAB
‘like sand running through the hour glass’ I am drawn back to $HCLP. Perhaps the sand of Cancun is more appealing.
Good luck. No fucking way i would go to Mexico. But our country is full of ignorant college kids and white trash that think it is the spot. Miami without water you can open your mouth in the shower.
The charts are with you
but that PE is a little unnerving
Looks like this trades at a 20x EV/EBITDA… If that’s the case, no thanks… I haven’t done any research into this beyond looking at that above metric, but that’s an ’08 bubble metric. Assuming benign market conditions, though, this is a lock for the stated 8% divvie with some solid dividend growth.