Q3 Return: -6%
YTD Return: -3%
Investor: Jon Markman
Fomento Economico Mexicano (FMX) — commonly known as Femsa — might win the award for rockiest third quarter.
FMX moved sideways from July until mid-August, then proceeded to plummet around 13% in two weeks. In late August, it again reversed course, posting a 13% climb … until around a week ago.
In the past five days alone, the stock has shed 5% yet again — enough to finish the quarter in the bottom three. That’s especially disappointing considering Jon Markman’s pick was on pace for the silver medal back in March.
Markman was bullish on the Mexican market, but so far seems to have misjudged the company’s strong prospects for growth — at least for 2013. In the past two quarters, Femsa missed earnings and posted unimpressive same-store sales growth.
On top of that, Zacks slapped the stock with a downgrade this quarter, citing weak earnings, stiff competition and rising commodity costs.