Comerci Falls for Second Day After Reaching Record Last Week
Controladora Comercial Mexicana SAB (COMERUBC), a Mexican supermarket chain whose shares almost doubled last year, fell for a second day on speculation the stock may be expensive compared with competitors.
Shares of the Mexico City-based company fell 3.9 percent to 45.80 Mexican pesos at the close of trading in Mexico City, the biggest drop in two months. It was the biggest contributor to today’s 0.2 percent drop in the Mexico IMC30 Index (IMC30) of mid-cap stocks. The shares reached a record 49.05 on Jan. 10.
Comercial Mexicana’s price is 35.6 times the company’s earnings over the most recent 12-month period, compared with a ratio of 24.1 for competitor Organizacion Soriana SAB and 27 for Grupo Comercial Chedraui SAB.
“In terms of valuation it’s quite expensive,” said Luis Willard, an analyst at Grupo Bursatil Mexicano in Mexico City. He rates the stock “market underperform.”
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