Wednesday, November 12, 2008

MELI has a great quarter and reports on the wrong day

Or maybe that should read 'wrong year'.

Mercado Libre (MELI) blew away even the most optimistic of calls on its 3q08 earnings and returned a 13c EPS. Sales revenues of U$40.3m were also top notch. These are really good numbers and unsurprisingly MELI jumped bigtime at the bell, touching $13. However the broad market selloff has taken a lot of the shine off today's pop and right now it sits up "only" 13.5% at $11.70 or so.

As for me, well I know I'm fated to get this stock wrong 100% of the time. I sold nearly a buck lower yesterday after chickening out, even though I like the fundamentals of the stock and in this post called it a buy at $20 with charts and everything (in my own defence that was before the whole of the stock market dumped bigtime, but a call is a call). The worst of it was that I even called 3q08 EPS at 10c in that post, and the big beat yesterday should have me buying this stock again. But i think it's best left alone...I might get the big picture on MELI, but my mojo just doesn't work for trading it.