Long Mercadolibre

Npard23

Junior member
39 2
I think with a short dated protective put (to cover earnings risk), going long MELI is a good trade here.

They are the eBay of LATAM and have high growth rates in earnings and ROI, but stock is down over 30% due to concerns related to Venezuela. I included links to my video analysis and financial figures to help traders.

Video Link:
 
Last edited:

Npard23

Junior member
39 2
I think with a short dated protective put (to cover earnings risk), going long MELI is a good trade here.

They are the eBay of LATAM and have high growth rates in earnings and ROI, but stock is down over 30% due to concerns related to Venezuela. I included links to my video analysis and financial figures to help traders.

Video Link:

Exited this trade for 1% profit. I thought the negative reaction to good earnings means that investors aren't buying the quality of the company's financial performance. Waiting for a lower entry price or reversal of technical momentum on the bullish size.
 

Jack o'Clubs

Experienced member
1,554 342
Wasn't the issue that the beat came from Venezuela and so was low quality, given inability to confidently predict FX or business outlook there? Other operations were largely inline and risks are to the downside given headwinds of Brazil macro. Stock is trading on 30x which isn't excessive by internet standards, but if i was calling an end to the tech rout and looking in EM to do it, I'd rather be buying something like Naspers which I think is more interesting given the HoldCo discount, so you effectively buy Tencent and get the African media businesses for free, or Mail.ru which is bargain cheap right now given Russia political concerns.

Nice to see an intelligent stock specific post.
 

Npard23

Junior member
39 2
Wasn't the issue that the beat came from Venezuela and so was low quality, given inability to confidently predict FX or business outlook there? Other operations were largely inline and risks are to the downside given headwinds of Brazil macro. Stock is trading on 30x which isn't excessive by internet standards, but if i was calling an end to the tech rout and looking in EM to do it, I'd rather be buying something like Naspers which I think is more interesting given the HoldCo discount, so you effectively buy Tencent and get the African media businesses for free, or Mail.ru which is bargain cheap right now given Russia political concerns.

Nice to see an intelligent stock specific post.

Jack, I will take a look at those names as well.
 

tradebeginner

Junior member
15 0
Excellent Article with Video. Thanks for Sharing with us
 
 
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