Question for finance heads
- Thread starter acri1
- Start date
Ok breh let me show you some love
set up a trading account and post back here when you do
whenever I have a good buy
I will send you a shout
matter fact
do this
BUY MERCADO LIBRE (MELI)
the ebay of south America just starting to grow as they have less than double digit % of the SA market BUT
-1-2 million signups a month
-revenue out the ass
-has mercado pago (paypal equivalent) making money out the ass
-starting to connect to retailers
-really revving up their mobile platform (gearing for social networking marketing revs?)
-Virtually no competition and they are strong believers in moats (don't believe the ebay/amazon hype, they got this shyt on lock)
currently low $90's
-matter fact ebay owns 18% of it and the ML links to ebay on their site for US purchases (I am sure ebay or amazon or google will buy them eventually)
-no institutional owner has sold a share despite short fukkery (currency shenanigans)
-they give ever growing dividends
at some point soon, the shorts will stop their fukkery and the Kraken will be released and it will be $150-200
Also
keep an eye out for the alibaba ipo, the sky is the limit with that one
It has begun
MercadoLibre Remains a Solid Long-Term Buy
By Meetu Anand | More Articles | Save For Later
April 11, 2014 | Comments (0)
MELIMercadoLibre
CAPS Rating 4/5 Stars
$88.99 $1.21 (1.38%)
E-commerce player MercadoLibre (NASDAQ: MELI ) , better known as the eBay (NASDAQ: EBAY ) of Latin America, has fallen off a cliff. Its shares are down 30% in the last six months and the stock is now trading close to its 52-week low. With competition from Amazon.com (NASDAQ: AMZN ) rising in Latin America, is there a turnaround in sight for MercadoLibre? Let's check.
Bouncing backMercadoLibre reported some solid numbers in the fourth quarter. The company beat analysts' expectations and shares soared. Revenue for the fourth quarter rose 29.8% to $134.6 million from the year-ago period, while analysts expected it to be around $132.8 million. Operating income rose 33.2% to $52.1 million.
As we see from the numbers, MercadoLibre is growing at a robust pace. It has been able to achieve this growth rate on account of the strategic moves it undertook in the previous quarters. MercadoLibre's focus on the promotion of its payment and shipping solutions to facilitate e-commerce growth will ultimately help it enhance the user experience, both on and off its platform. The enhancement of its mobile and category specific capabilities will also allow MercadoLibre's users to customize its offerings according to trading trends.
In addition, MercadoLibre's promotion of its open platform will also make its services more accessible to third parties. By following this approach, MercadoLibre expects to become the technology partner of choice for anyone who's thinking of trading online in Latin America.
Growth opportunities and MercadoLibre's movesA key statistic that investors shouldn't forget is that e-commerce accounts for less than 3% of Latin America's total retail volume. This is the area were MercadoLibre is focusing to tap enormous growth opportunity. The Latin American e-commerce market is expected to grow rapidly in the future. At present, Brazil accounts for almost 60% of the entire e-commerce business in Latin America, and this market is expected to grow by 178% to $22 billion in 2016.
So, MercadoLibre is not wrong in expecting that the accelerated pace at which online retail is penetrating offline retail in Latin America will result in the growth of its business. To tap this growth, the company had launched the MercadoEnvios program last year, and since then, it has gained good traction in the market. MercadoEnvios connects the company's online and offline services, thereby promoting e-commerce in Latin American countries.
The program was initially started in Brazil and then quickly expanded to Argentina, with Mexico next on the radar. In simpler terms, MercadoEnvios is a delivery service that speeds up sales while protecting sellers' data. More importantly, MercadoEnvios connects the company's online and offline services, thereby promoting e-commerce in Latin American countries.
MercadoLibre positions itself as a virtual shopping mall with a variety of products available for its users. Apart from other products, two categories, namely apparel and sports, have grown considerably in the past year. MercadoLibre has attracted big brands to sell their merchandise directly through its online store. With the increasing presence of large retailers on its marketplace, it plans to deploy more official online stores in the upcoming quarters, which will improve its depth and quality of items.
Management believes that whatever MercadoLibre has achieved till now is just a drop in the ocean. It expects sustained and solid growth in 2014 by driving payments growth through product and technology innovations, and by leveraging its payments brand both on and off its marketplace. In addition, MercadoLibre plans to develop mobile apps with category-specific features that will allow shoppers to have the best possible shopping experience on any screen size.
So, MercadoLibre has been chugging along nicely so far and its growth rate has been fantastic. However, the growing influence of bigger and more established rivals such as Amazon and eBay can slow down the company in the future.
Potential concernseBay had entered the Latin American market through MercadoLibre and it agreed that it won't expand into MercadoLibre's core markets. With eBay now holding an 18% stake in MercadoLibre, it would seem that neither would hurt the other. But their agreement expired eight years ago and eBay has the freedom to open up shop in Latin America, as Fool analyst Brian Stoffel wrote last month.
Last year, Bloomberg reported that eBay was going to boost its staff by 50% in the emerging markets. eBay could follow a tried-and-tested approach of releasing a mobile app before launching a desktop website. Hence, eBay's threat shouldn't be ruled out.
Meanwhile, Amazon is intent on making a mark in Brazil. As mentioned earlier, Brazil is expected to be the biggest driver of the Latin American e-commerce market. It is quite obvious that Amazon won't leave this opportunity and recently started selling the Kindle online in Brazil. With this move, Amazon has expanded from selling e-books to retail for the first time in Brazil.
Since MercadoLibre gets 44% of its revenue from Brazil, Amazon's move is a concern for the company. However, MercadoLibre has already established a strong foothold in this market and has experience of dealing with local logistics problems. Amazon, on the other hand, hasn't had any experience with the logistics problems that are prevalent in Brazil, such as transport of goods, infrastructure problems, and long distances.
So, while Amazon is a threat, it isn't a big enough one right now.
Bottom lineMercadoLibre's shares have taken a good beating in recent times. The company's business, however, is growing strongly and it is employing several strategies to tap the Latin American e-commerce market. While there are possible threats, MercadoLibre is established in Latin America and has an upper hand over newcomers. Foolish investors should keep an eye on MercadoLibre going forward.
NUS and OMER are 2 other stocks to play in
One needs to establish a long term position in OMER (below 12.50 is)
as well as some volatility lots.
at some point this stock will test the $37 PT REITERATED AND RECENTLY RAISED by Wedbush, if it doesn't your volatility lots should have left you playing with house money by the time you give it up
and one needs to look at NUS as a volatility play for the next few days (bob and weave mofo!
until it settles before a run back to its former glory
on the other hand it may just get squeezed the fukk all the way back there and then some, just in the premarket alone so..... Wish I told y'all about NUS sooner...
regardess there will be volatility
Ok breh let me show you some love
set up a trading account and post back here when you do
whenever I have a good buy
I will send you a shout
matter fact
do this
BUY MERCADO LIBRE (MELI)
the ebay of south America just starting to grow as they have less than double digit % of the SA market BUT
-1-2 million signups a month
-revenue out the ass
-has mercado pago (paypal equivalent) making money out the ass
-starting to connect to retailers
-really revving up their mobile platform (gearing for social networking marketing revs?)
-Virtually no competition and they are strong believers in moats (don't believe the ebay/amazon hype, they got this shyt on lock)
currently low $90's
-matter fact ebay owns 18% of it and the ML links to ebay on their site for US purchases (I am sure ebay or amazon or google will buy them eventually)
-no institutional owner has sold a share despite short fukkery (currency shenanigans)
-they give ever growing dividends
at some point soon, the shorts will stop their fukkery and the Kraken will be released and it will be $150-200
Also
keep an eye out for the alibaba ipo, the sky is the limit with that one
Ok breh let me show you some love
do this
BUY MERCADO LIBRE (MELI)
the ebay of south America just starting to grow as they have less than double digit % of the SA market BUT
-Virtually no competition and they are strong believers in moats (don't believe the ebay/amazon hype, they got this shyt on lock)
currently low $90's
Damn man, good fukking call!