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VALLARTA TRIBUNE is a weekly newspaper written in English, aimed at tourists and residents of the United States and Canada in the Bay of Banderas and the region. Its content consists of a tourist guide, articles, reports, interviews and information on tourism, gastronomy, folklore, arts, culture and activities that help in decision-making in the choice of buying and selling of goods and services, as well as to diversify the moments of leisure and entertainment of the reader.

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  • The paper used in this publication is ecology friendly

    May 7 - 13, 2012 | Issue 787 Free Issue www.vallartatribune.com

    A kiss snatched by the waves

  • www.vallartatribune.com May 7 - 13, 2012 | Issue 7872

    Local

    How come I dont visit the local landmarks anymore? It has been a while since I stopped going to either Los Arcos at Mismaloya or Los Arcos at El Malecn every week, as I used to when I was a newcomer. My kids no longer think it is cool to walk along the beach with me, although they are not old enough to walk along the beach with a girl yet, caught as they are in the early teens. For the time being, they find it fancier to hang out at Galeras with friends.

    I knew I had become a local when the timeshare guys simply quit trying to stop me for a presentation, after seeing me out on the street day after day and week after week. I am the knowledgeable guy now, and when I go walking camera-in-hand and bump into a rookie OPC who tries to stop me, I can tell him look man, I dont qualify for your resort, save the breakfast for a more valuable unit, having learned the lingo of the trade after years of exposure.

    Local touristsGranted, there are more

    attractions in Puerto Vallarta now, the aforementioned shopping mall among them, but the most thrilling experiences I have lived have been in the outdoors. Zipping along the canopies of trees, climbing up the stairs to the mountain behind the church to find a spot for the best sunset photograph, sailing to try to watch whales, releasing turtles at the dusk, surfing under the... no, surfing is not really my thing, although I have good friends whose it is.

    Is overexposure to the beauty of nature making me blind to this very same beauty? Old friends from my former life usually tell me: wow! How lucky of you to live in a place like Puerto Vallarta! Well, lucky I am indeed, and when I think about it, I get saddened by the feeling that maybe, just maybe, I am missing new adventures of old Vallarta.

    So, welcome folks from far and away; there is only one Puerto

    Vallarta and you wont find it anywhere else in the world, that I can guarantee.

    Go sightseeing, let yourself loose under the sun, walk barefoot on the sand, visit our many and good art

    galleries, admire the local artists along our new Malecn, in one word, be as tourist as you can be.

    That way, when you decide to move to Vallarta permanently, you will know the lingo!

  • www.vallartatribune.comMay 7 - 13, 2012 | Issue 787 3

    Financial

    A first-hand analysis suggests that the Mexican market continues to pay a premium to its peers, even to the most prestigious markets.

    We attribute the willingness of foreign capital to extend its flows into Mexican markets to the countrys economic stability and the solid state of Mexico-based companies.

    This week we rank our main multiples in relation to those of other markets, and look what we discovered.

    Of the various financial/equity multiples used for measuring how rich or cheap a market is trading, three are the most common and which for comparative purposes are most readily available. On this occasion we are presenting the three most comply used multiples (EV/EBITDA, P/E and P/BV) for

    At what point in the cycle are we with regard to IPC multiples?

    the IPC for a period extending back over seven years.

    After establishing those figures, we will seek to identify regular cycles in the trends of these indicators, specifically in relation to their own averages. In other words, we sought to identify at what point along the various curves we stand.

    It is worth noting that these multiples (which are no more that the ratios between market share prices and one or more components of their financial statements) are determined in relation to the aggregate results that companies report and accumulate each quarter.

    Their strength or weakness and above all their consistency- often times depend on market responses, which serves to richen or cheapen these multiples, in cycles whose trajectory becomes apparent over

    a certain extension of time. We can say in this regard that our sample of IPC components has shown a more-than-acceptable panorama of relative stability and solidity except during the global collapse of 2008-2009.

    Company growth, whether organic or by means of acquisitions, their internationalization and creation of efficiencies have continued to be consistently manifest with a scant few exceptions.

    In addition, monetary stability, the maintenance of level interest rates and above all the absence of inflation pressures have helped to create an environment of heightened certainty that has been well appreciated and which foreign investors continue to pay a premium for as they continue to pour capital into the Mexican market.

    In fact, this argument (the premium paid for economic stability and coherence on top of the quality of corporate governance and leadership of most companies that trade on the MSE), would appear to best explain the extent to which the IPC continues to trade at multiples greater than those of many other markets. In this sense, it is necessary when discussing the extent to which the IPC is relatively rich or cheap in relation to other markets, it is necessary to take into account the economic environment

  • www.vallartatribune.com May 7 - 13, 2012 | Issue 7874

    Weekly publication edited, printed and distributed by Ediciones y Publicaciones Siete Junio, SA de CV Grupo Editorial Tribuna Calle 21 de Marzo # 1174 Col. Lomas del Coapinole Del. El Pitillal, Puerto Vallarta, Jalisco Mxico

    CP 48290 Tel. (322) 226-0829, 226-0800Questions about Distribution: ventastribuna7@yahoo.com

    Jess Manuel Daz ZuritaDIRECTOR

    Alonso VerdeADVERTISING MANAGER

    alonso.verde@tribunadelabahia.com.mx

    Letters to the Editoreditor@vallartatribune.org

    DESIGNERCynthia Estela Andrade Gtz.cisandra@vallartatribune.com

    Vallarta Tribune is an activity and entertainment guide and merely publishes information as it is provided by the advertiser or event host.

    We do not assume responsibility in errors or omissions other than to correct them as soon as they are made known to us regarding event schedules, locations and/or prices. In addition, we do not assume any responsibility for erroneous inclusion or exclusion of information except to take reasonable care to ensure accuracy, that permission has been obtained to use it, and to remove it as soon as is practical upon receiving your notification of error.

    We recommend you always confirm prior to attending or visiting an event or establishment.

    Editor.

    by Liza Macedo

    www.vallartatribune.com

    Welcome to Puerto Vallarta. A warm welcome to each and every one you, visiting our secret little paradise.

    Starting with our representative at Gustavo Diaz Ordz International Airport, who presented you with this complimentary copy of the Vallarta Tribune, we wish you

    Our Home is Your Home

    Financial

    The paper used in this publication is ecology friendly

    May 7 - 13, 2012 | Issue 787 Free Issue www.vallartatribune.com

    A kiss snatched by the waves

    an unforgettable stay and many wonderful experiences. We hope the Tribune will provide you with useful tips making your vacation more enjoyable.

    No matter where you may be visiting from, Canada, the U.S., another part of Mexico or perhaps even Europe, Nuestra Casa es tu Casa, Our Home is your Home, Bienvenidos!

    We look forward to receiving your comments, should you wish to share your experience with us, please feel free to do so, send your story to editor@vallartatribune.org

    Have a great time, the City of Puerto Vallarta hopes to see you again soon!

    as well as the management quality of the specific companies.

    The multiple we most commonly use as our key valuation reference point, EV/EBITDA, appears to evolve in relatively defined cycles.

    The oscillations of the past seven years that appear in the accompanying figure lead us to conclude that that the cycle is touching the average for the bottom of the cycle, though we should not jump to the conclusion that this means that enterprise value (EV) in relation to benchmark EV/ EBITDA is necessarily going to be on the upswing in the coming months. In any event it is interesting to note that in recent years this multiple appears to be the most volatile to these three ratios even as it offers a relatively interesting degree of regularity.

    From the vantage point of this multiples position relative to those of other markets, the IPC is paying a premium to indexes such as the Nikkei, the Hang Seng and Londons FTSE, and it also displays closeness even to the Dow

    Jones industrials and the Shanghai benchmark. In statistical terms we would add that this EV/EBITDA sample shows a median level of 8.9 times, and offers a deviation of +-3.6 times.

    Especially noteworthy in relation to the P/E multiple is the extent to which around mid 2010 sharp reductions in operating income on the part of major firms such as Cemex, Elektra, Bimbo and to a lesser extent Amx, suddenly caused the average P/E multiple to spike from 18x toward 29x, which gave way over the course of the year to an adjustment in market prices, and ultimately normalized this multiple near its average.

    Only recently (since mid 2011), have we witnessed a recovery in this indicator to unforeseen levels, with the exception of those registered over the course of the collapse of 2008-2009. The relative premium of this IPC multiple relative to those of other markets reveals a clear premium compared to the multiples of such markets as those of Brazil, Switzerland, London, Spains Ibex and even the S&P Composite. Statistical