StoneCo Ltd. (STNE-Q)

Stockchase Research Editor: Michael O'Reilly STNE is a fintech company providing e-commerce serves in Brazil, where 85% of all transactions are still conducted with cash. The company currently accounts for 51% of the countries current e-commerce business. Warren Buffet's Berkshire Hathaway owns a sizable piece of the company. The company just recently made a $1.1 billion acquisition of a retail management software company that can help extend its reach. We like the entry here, which is a retracement off the $55 highs. Annual sales growth is over 30%, with over 500,000 clients (up 74%). The recent share pullback might well be associated to a follow-on offering of 27 million shares at $47.50. We would trade this with a stop-loss at $45 -- an area of significant technical resistance that should now act as support. Yield 0%