Latin America internet player Mercadolibre (MELI) is one volatile stock… every time it weakens we get commentary about a coming secondary (which they tried to price in the past, but withdrew) – eventually I assume it will happen. But for now, we just like to layer in on dips, and layer out on strength. The chart is quite poor as the stock has broken all major key support levels but with the stock down 15% from its peak Friday (and 30% from its peak), I made some purchases this morning in the $40s/$41s, taking the stake up from 0.7% to 1.5% of the portfolio. Due to the bipolar nature of this stock it is hard to tuck this away as a buy and hold; not to mention a very pricey multiple. So we’ll pick our spots and when some of our holdings, especially ones we’ve cut back on severely show these price contractions we will begin to rebuild the stake. There is good support there in the mid $30s so we’ll look to load up in larger scale if/when we reach that level.

[May 14: Mercadolibre Reports]
[Mar 31: Mercadolibre with a 3PM Spike/Forbes Article]

Long Mercadolibre in fund; no personal position

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