MercadoLibre, Inc. (NASDAQ:MELI)

Seems like a solid growth story, but it is relative overpriced .. It will need to execute to deliver growth which I am expecting it will

The stock has simply gotten way ahead of itself. At 13 X sales, and 17.5 X book value, there is a lot of blue sky between the current price and fair value.

This South American Amazon like company is partially owned by eBay because eBay realized that they understood their market a lot better than eBay ever could. I have owned this company for over year and I believe that they are proceeding along a course that is moving along with the adoption of the Internet and e-commerce in most of the large South American nations. I think in 10 years this company's market cap will be 4 to 5 times what it is now.

Dreadful user experience and the competition is starting to move against them.

"We have to look at the bigger picture here with the overall retail environment in Latin America: right now, e-commerce makes up about three percent. So that just gives you an idea of how much room this company has to run. They are the leader there by far, so I think that if you're looking to get in with a company taking advantage of that e-space in Latin America, MercadoLibre is definitely the way to do it." -Jason Moser, on (the surprisingly kickass) InvestorBeat

This is a very well managed company with the potential to be the next Ebay.

Efficiently run, best of breed in the region. despite low mobile and computer penetration in the region, MELI continues to maintain deepest and most wide ranging customer base throughout central america. As use of mobile devices explodes, and use of non-mobile computing continues to increase in the region - MELI will continue to be well positioned to provide additional services to people in these markets.

Key player in online shopping in Fast growing Latam market.
eBay of Latam, with ebay owning 25%. Countries like brazil have à large population with a fast growing middle class and relatively low Internet penetration. So lot's of room for growth.

latinamerica Ebay

Picked at a suppertime game that Tom G. catalyzed but didn't commit to scoring, asking for a stock you think will beat the market over the next five years. Outperform.

The leader in the Latin American online retail market. Get's about three times as many visitors per month than Amazon does in the regions it operates. Operates more like eBay than Amazon, which keeps margins high. Simply, it takes the best, most profitable aspects of commerce websites, and successfully integrates them into its own website, e.g. MercadoPago = PayPal.

The Latin American market has a lot of potential for growth, with only 40% internet penetration. Internet access is growing at a phenomenal rate in the region, so it won't take long for the company to realize this potential. Online commerce is huge in the area, it's estimated Chile does more business online per capita than the US.

Earnings misses don't concern me. ROE is good, and debt levels are minimal. The earnings growth is still fantastic, and I believe the P/E multiple is justified by the growth potential. It has a lower PEG than eBay. It's also trading at a discount to its historical P/S ratio.

Internet peneration in South America.

Latin consumers are just starting to use the internet to shop. As they become accustomed to not taking possession of their purchases as soon as they buy them, use will increase and MELI will appeal because of the culture of haggling. Moreover, MELI is already available in all the large SA markets.

Mercado Libre has been down since the beginning of the year, mainly because of uncertainty in the world economy, a miss in first quarter profit and a slower economic growth for Brazil, which represents a huge part of its current market. Although all this justify why the recent downside in the stock price, the company still has lots of space for growth in the long term, driven by the growing middle class of Latin America who are getting online. That's why although we can expect volatility in the short run because of economic uncertainty, uncertainty creates buying opportunities, and at today's price I think MELI is set to outperform the S&P 500 in the long term.

like it better at 65

Latin America will continue to grow at a rate greater than the U.S.

Latin America is growing in internet participation and will keep growing at high rates for the next three to four years. This will, no doubt, benefit Mercado Libre. And it will not only be Brazil, Mexico, Chile, Colombia, Ecuador, Peru, Argentina, but many more of the smaller countries ...

Together with PSMT it taps directly in a booming LATAM middle class that is getting increasingly wealthy.......and getting online!

RB Best Buy Now