Investing

Despite Share Sale Withdrawal, Mercadolibre Takes Heat (MELI)

Mercadolibre, Inc. (NASDAQ: MELI) is in a unique spot as it serves an online payment and e-commerce gateway and platform throughout much of Latin America.  The company’s stock is also down close to 50% from the last 90+ days.

Last night, we saw that Mercadolibre (NASDAQ: MELI) had withdrawn its shelf registration statement that would have allowed insiders and the company to sell stock.  On this filing we asked if traders should buy as the company sells.  The reason for the shelf withdrawal was "…on the grounds that the withdrawal of the Registration Statement is in the best interests of the Company’s stockholders and consistent with the public interest and the protection of investors…"

We frequently discuss restructurings, activist investor trends, IPO’s, back door plays into IPO’s, SPAC’s, spin-offs, and more on our open email distribution list.

Interestingly enough, shares are down over 1% today at $39.25 on a day that the U.S. markets are soaring higher.  You’d think this might take off some "added float pressure" normally seen, but the market isn’t treating it that way right now.  This was also one of Jim Cramer’s Latin American internet picks, although at significantly higher prices that went even higher before a monstrous pullback.

Jon C. Ogg
April 1, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at [email protected]; he does not own securities in the companies he covers.

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.