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Bilifuduo (98.27)

Mercadolibre

Recs

21

November 07, 2011 – Comments (1) | RELATED TICKERS: MELI

Often called the "eBay of South America," Mercadolibre recently soared after reporting a blowout quarter, as elaborated upon by a Foolish article:

http://www.fool.com/investing/general/2011/11/03/mercadolibre-shares-soared-what-you-need-to-know.aspx?source=itxsitmot0000001&lidx=2

 

Mercadolibre acts as an online marketplace, transaction service, and electronic payment service in Latin America. After some prodding of this Latin American Internet play, I am convinced Mercadolibre is a solid momentum play.

 

Examination of the Earnings Per Share segment of Mercadolibre reveals healthy growth. Its EPS % Change for the third quarter compared to the same quarter last year is 36%, while the growth of the last three quarter's EPS averaged out to 35%. Next quarter's EPS estimates are up 36% from the same estimates bestowed upon the same quarter of last year, and its estimates were revised upward. Its 3 Year EPS Growth is 68%, while the overall estimated change in EPS for this year compared to last year's is 27.13%. A sign that the financial performance of this stock has been consistent, Mercadolibre has had 4 years of CONSECUTIVE EPS growth.

 

Mercadolibre also has a 0% Debt/Equity Ratio, an extremely rare statistic especially for Internet startups that usually rely on venture capitalism and outside borrowing. The percentage change in sales of the third quarter compared to the same quarter of last year is 46%. Its 3 Year Sales Growth Rate is 28%, and its annual ROE (Return on Equity) is 39.8%.

 

All of these statistics are testaments to one key aspect of the company: Continuing growth. In a time of almost defunct nations, the crippling of the largest agglomeration of economies in the world (the Eurozone), and arbitrary 60% price hikes, it is somewhat comforting to know that stocks such as Mercadolibre continue to show healthy growth without being handicapped by world financial problems. 

1 Comments – Post Your Own

#1) On November 07, 2011 at 9:46 AM, JaysRage (88.76) wrote:

This is the one stock that I'm kicking myself for losing track of on my watch list.    If I hadn't been asleep at the wheel, they would have been a part of my portfolio prior to the earnings announcement.    I like them a lot, but I don't like their current sky-high valuation.   I think there will be better price points for this one.   I just have to make sure I'm not asleep again when it happens the next time. 

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