MELI --- MercadoLibre Inc

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by bigbull, Sep 22, 2016.

  1. bigbull

    bigbull Active Member

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    [​IMG]

    MercadoLibre.com or MercadoLivre in Portuguese is an Argentine online marketplace dedicated to e-commerce and online auctions. eBay is the largest common stock owner in MercadoLibre, with 18.40% of total common stock.
     
  2. bigbull

    bigbull Active Member

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    Just keep buying on carried momentum and use the previous closing high as a stop. Meanwhile, sell deep OTM puts for an eventual washout to get cheaper shares.

    MELI had almost 160M users, close to 50% of the total internet enabled user population in Latin America.
     
  3. bigbull

    bigbull Active Member

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    That is what is called a multiplier effect. The other company that I can think of that has similar scale is Amazon.

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    MercadoLibre Hits High As JPMorgan Gives E-Commerce Firm Thumbs Up

    JPMorgan analyst Andre Baggio, in a research note, said MercadoLibre is reaping the benefits of its enhanced marketplace, which combines payments and shipping to enhance the buyer experience and boost activity. MercadoLibre is sometimes called the eBay (EBAY) of Latin America.

    "Revenues are growing at the highest levels reported since the company went public in 2007, even though (the company overall is) 10 times larger now, demonstrating the potential of e-commerce," Baggio wrote.
     
  4. StockJock-e

    StockJock-e Brew Master
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    Never heard of this company, but now its on my radar! Thanks!
     
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  5. bigbull

    bigbull Active Member

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    Items sold in the company's e-commerce platform reached 43.7 million units during the second quarter of 2016, an increase of 44.7% versus the same period one year ago. This is the fastest growth rate that MercadoLibre has reported since 2009.

    Different indicators across the board are pointing in the same direction. Gross merchandise volume reached more than $2 billion last quarter, a 21.2% increase in U.S. dollars and growing 67.9% in local currencies. Total revenue amounted to $199.6 million, an annual increase of 29.4% in U.S. dollars and a 72.5% jump in local currencies.

    MercadoLibre owns a digital payments platform called MercadoPago, and performance in this business looks stronger than ever. Total payment transactions were 31.9 million last quarter, a 76% increase versus the second quarter in 2015. Total payment volume reached $1.8 billion, growing 50.6% in dollars and 101.6% in local currencies. MercadoPago's on-platform penetration reached a record high of 75% last quarter, almost 20% points higher than in the second quarter of 2015.

    http://www.fool.com/investing/2016/09/08/why-this-analyst-raised-his-mercadolibre-price-tar.aspx
     
  6. Charles Noble

    Charles Noble Well-Known Member

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    High risk stock has been getting plenty of push and press lately but chart shows its ability to slide off a cliff. Caution 262-264
     
  7. bigbull

    bigbull Active Member

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    Needs to hold $292.18 to $299.85 into Labor Day to validate the base its trying to establish at $285. I like the name at these levels for a trade but it may prove too early to get in. If it can reclaim $313.64 it has room to $342 to $349. I am unsure if the highs will be revisited anytime soon, though, given the economic turbulence in Argentina.

    I would take my cue from the EMQQ -- Emerging Market Internet and E-Commerce ETF, which is holding up better than the EEM. If EMQQ break trend below $37 by Labor Day, I`d hold off in buying a name like MELI:
     
    #7 bigbull, Jun 26, 2018
    Last edited: Jun 26, 2018
  8. bigbull

    bigbull Active Member

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    Held onto $292.18 and $299.85. Did not expect it to blast through resistance -- $342 to $349 -- in three weeks. The set-up is similar to the move off the lower base ULTA formed earlier in the year were supplier exhaustion led to a pent-up in demand. If similar trends are at play, then the most likely outcome is consolidation between $344.12 and the most recent high of $381.50 before resolving the current 52-week range into year-end (up or down).

    The stock now needs to hold $363.07 into year end to warrant any type of breakout. Any break back below this point warrants caution.


     
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