MELI was recommended by Cabot China & Emerging Markets Report at $69.20 inInvestment Digest issue 677, dated August 18, 2010.
“Earnings season remains a minefield, and the unsettled state of the market only increases the potential downside for companies that fail to meet analysts’ expectations. That’s just what happened to MercadoLibre, Inc. (MELI), the ‘eBay of Latin America,’ which we have had in the portfolio since November 2011.
“MercadoLibre reported earnings of about 45 cents per share, while analysts had expected 46 cents. The reaction has been harsh, with MELI gapping down to about 77 on huge volume. At this price, MELI hasn’t violated our 15% maximum loss limit, but most stocks that gap down on high volume are usually cooked, at least in the intermediate term. We will sell and hold the cash.”
- Paul Goodwin, Cabot China & Emerging Markets Report, May 9, 2012