On tonight’s MAD MONEY on CNBC, Jim Cramer was discussing an opportunity he sees in Argentina-based Mercadolibre, Inc. (NASDAQ:MELI). Cramer likes the model. It hosts an online trading platform in Latin America that facilitates e-commerce and related services. It permits businesses and individuals to list items and conduct their sales and purchases online in either a fixed-price or auction-based format. It also provides MercadoPago for online payments to be paid and sent.
Cramer of course used the Google (NASDAQ:GOOG) and Baidu.com (NASDAQ:BIDU) analogy to derive a value, but said it’s more similar to Baidu. He really digs its Latin America focus and he noted that this one could go from around $55.00 to somewhere around $85.00 down the road.
Even more interestingly, Cramer did something different than his normal caveats about waiting for a sell-off or a pullback. He noted something to the tune of, "You might get it cheaper if you wait, but I wouldn’t wait too long on this one."
Mercadolibre came public at the end of Summer and every time this has pulled back it has just been a buying opportunity. Its shares closed up 5.5% today at $53.63 and that was less than 1% under its prior 52-week highs. Shares rose over 5% in after-hours to almost $57.00.
Jon C. Ogg
December 13, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he does not own securities in the companies he covers.