Opinions
The Panic-Proof Portfolio (Stockchase Research)
MercadoLibre
MELI-Q
TOP PICK
Apr 30, 2024
Stock price when the opinion was issued
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Premium contentPremium contentPremium contentPremium contentOur PAST TOP PICK with MELI has triggered its stop at $1923. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 28%, when combined with our previous guidance.
"The AMZN of Latin America", without the cloud business. Largest online e-commerce and payments ecosystem in the region, active in 18 countries. Valuation's not all that bad. The fintech arm is growing faster than the e-commerce side. Shares trending higher since mid-2022. EPS growth rate forecast at 35%. One of the top EM growth stories out there. No dividend.
(Analysts’ price target is $2535.46)He's not that familiar with this one. Look at free cashflow (operating cashflow minus capex). As a tech company,
stock-based compensation could be a potential landmine (giving out shares, but it "doesn't count" because it's not a cash item). Strong company, though some negative ROIC in the past going back to 2018 (which was before Covid). Too expensive here to buy afresh.
Leader in Central and South America. If you own it, hold, as long as returns on capital continue strong and don't turn negative. Probably a compounder, as these are winner-take-all businesses.
See his Top Picks.
We reiterate this e-commerce company, based in Buenos Aires, provider of online retail services in Latin America. It has 85 million unique customers using its services. We like that cash reserves are growing, while debt is aggressively retired and shares are bought back. We continue to recommend a stop at $1300, looking to achieve $1920 — upside potential of 30%. Yield 0%
(Analysts’ price target is $1921.38)