March 12 (Bloomberg) -- Corp. Geo SAB led Mexican homebuilders lower after an industry conference failed to address investor and analysts concerns that the companies face increased cash needs with limited ability to borrow more.
Geo, the country’s third-biggest publicly-traded homebuilder, fell 3.9 percent to 9.60 pesos today in Mexico City trading, the lowest price since September 2003. Urbi Desarrollos Urbanos SAB declined 2.3 percent to a record-low 3.79 pesos and Desarrolladora Homex SAB dropped 1.5 percent to 25.12 pesos.
The four-day conference in New York and London left investors and analysts with “a bad feeling,” said Javier Gayol, an analyst with Corporativo GBM SAB in Mexico City who rates Geo, Homex and Urbi at the equivalent of sell.
“They did not tell us how they are going to get out of the liquidity issues they have,” Gayol said today. “We have no hopes of seeing further de-leveraging for the companies.”
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