Core Insights - Triasima Portfolio Management Inc. sold 3,013 shares of MercadoLibre, valued at approximately $6.33 million, during the fourth quarter, leading to a decrease in the fund's quarter-end position by $7.19 million due to both the sale and price fluctuations [1][2]. Company Overview - MercadoLibre, Inc. is a leading e-commerce and fintech platform in Latin America, with a total revenue of $26.19 billion and a net income of $2.08 billion for the trailing twelve months [4]. - As of February 2, shares of MercadoLibre were priced at $2,145.37, reflecting a 12% increase over the past year, although it underperformed compared to the S&P 500's 15% gain during the same period [3][4]. Business Model - The company operates a comprehensive ecosystem that includes an online marketplace, fintech platform (Mercado Pago), logistics (Mercado Envios), digital advertising, and classified listings, generating revenue primarily through transaction fees, payment processing, credit solutions, and logistics services [5][6]. Financial Performance - In the third quarter, MercadoLibre reported $7.4 billion in net revenue and financial income, a 39% year-over-year increase, with operating income of $724 million and net income of $421 million [9]. - Payment volume surged by 41% year-over-year to $71.2 billion, and the number of monthly active fintech users reached 72 million, highlighting the scale of its ecosystem [9]. Investment Perspective - Following the sale, MercadoLibre represents only 0.14% of Triasima's assets under management, indicating it is a satellite holding rather than a core investment, especially when compared to larger positions in Canadian banks and other financials [3][8]. - The trimming of MercadoLibre shares reflects risk management rather than a lack of confidence in the company's fundamentals, which continue to show strong performance [10].

Core Insights - The article introduces "The Undercovered Dozen," a selection of twelve actionable investment ideas focusing on tickers with less coverage, which can include both large caps and small caps [1] Group 1: Inclusion Criteria - Tickers must have a market cap greater than $100 million [1] - Tickers should have received more than 800 symbol page views in the last 90 days on Seeking Alpha [1] - Tickers must have fewer than two articles published in the past 30 days [1] Group 2: Purpose and Benefits - The initiative aims to highlight investment opportunities that may be overlooked by the market [1] - Following this account will provide a weekly review of these undercovered ideas from analysts [1]

Group 1: Nvidia - Nvidia is the world's largest semiconductor company with a market cap of $4.6 trillion and is projected to grow to $10 trillion by 2030 through vertical integration in AI [3][5] - The company reported a 62% year-over-year increase in third-quarter revenue and a 65% increase in net income [5] - Nvidia's stock has a forward P/E ratio of 24, significantly below its five-year average of 37, indicating it is attractively priced [6] Group 2: MercadoLibre - MercadoLibre has a market value of $116 billion and operates as a combination of an online marketplace and fintech business in Latin America [7][9] - The company reported a 39% year-over-year increase in net revenue and has 77 million unique active buyers, with both figures growing over 25% year over year [9] - MercadoLibre's stock has a forward P/E of 31, well below its five-year average of 64, suggesting it is also attractively priced [10]

Core Insights - Coronation Fund Managers increased its stake in MercadoLibre by 53,352 shares, valued at approximately $112.06 million, reflecting a significant investment in the company [2][3] - The total value of Coronation's position in MercadoLibre reached $285.59 million, marking an increase of $78.93 million from the previous filing, driven by both new purchases and share price appreciation [2] - MercadoLibre's shares have appreciated by 19.7% over the past year, outperforming the S&P 500 by 4.68 percentage points [3] Company Overview - MercadoLibre operates a leading e-commerce and fintech platform in Latin America, with a market capitalization of $114.02 billion and a revenue of $26.19 billion over the trailing twelve months [4][5] - The company generates revenue through transaction fees on its marketplace, financial services, logistics, and value-added services for merchants and consumers [8] - MercadoLibre's competitive advantage lies in its integrated ecosystem of online marketplaces, digital payments, credit, and logistics, tailored to the Latin American market [5] Financial Performance - The company reported a net income of $2.08 billion over the trailing twelve months [4] - Revenue growth remains robust, with a year-over-year increase of 39% in the third quarter, alongside expanding margins and improved logistics efficiency [10] Investment Implications - The increased stake by Coronation Fund Managers indicates a strong conviction in MercadoLibre's long-term growth potential, as it now represents 12.81% of their $2.23 billion reportable assets under management [3][9] - The fund's strategy includes pairing MercadoLibre with other emerging-market growth companies, suggesting confidence in the company's competitive position despite its size [11]

Core Insights - Emerging markets have shown strong performance compared to U.S. equities, driven by renewed interest in commodities and non-dollar assets [2][3] - The iShares MSCI Emerging Markets ETF has increased by 10.5% year-to-date, while the SPDR S&P 500 ETF Trust has only gained 1.8% [3] - The South African rand has appreciated nearly 25% against the U.S. dollar over the past year, contributing to significant returns in South African equities [3] Company Insights - MercadoLibre is a leading e-commerce and fintech platform in Latin America, with a market capitalization of nearly $112 billion [5] - The company operates across various sectors including e-commerce, logistics, digital payments, and consumer credit, creating a comprehensive ecosystem [5] - MercadoLibre has a Moderate Buy consensus rating with an average price target of approximately $2,877, indicating a potential upside of around 30% [6] - Despite facing margin compression, MercadoLibre continues to grow, adding 7.8 million new unique buyers in Q3, bringing its total user base to 77 million [7] Industry Trends - Emerging markets are benefiting from commodity strength and a weaker dollar, attracting capital flows [8] - Companies like MercadoLibre, DLocal Limited, and NU provide exposure to the growth potential in Latin America's e-commerce, payments, and digital banking sectors [8] - Long-term growth prospects remain strong despite potential short-term volatility in commodities and currency fluctuations [8]

Core Insights - The investment environment in 2025 was challenging, with foreign equity markets achieving their best returns in over a decade, while the International Growth Composite Portfolio finished the year essentially flat due to a market preference for cyclically sensitive businesses [8][11]. Portfolio Performance - The International Growth Composite Portfolio's performance was -2.21% for the quarter and 0.68% year-to-date, compared to the MSCI ACWI (ex-USA) which returned 5.05% for the quarter and 32.39% year-to-date [5]. - Top contributors to the Portfolio's performance included Tokyo Electron, ASML, and Shopify, while the largest detractors were Monday.com, MercadoLibre, and SAP [13][17]. Company-Specific Insights - **Tokyo Electron**: A leading player in semiconductor manufacturing equipment, expected to grow revenues at a high single-digit rate and increase operating margins from 25% in 2024 to 35% in the medium term, driving mid-teens earnings growth [14]. - **ASML**: Benefiting from investor optimism around AI, as its equipment is essential for advanced chips, which are critical for AI applications [16]. - **Monday.com**: Despite strong results, the stock sold off due to concerns over near-term growth slowdown, but revenue growth is expected to sustain over 20% as it expands its market reach [18]. - **MercadoLibre**: The largest e-commerce platform in Latin America, experiencing a decline in stock price due to a slight decrease in operating margin while investing in growth initiatives [19]. - **SAP**: Despite cloud revenue growth exceeding expectations, the stock faced pressure due to market conditions, but is viewed as resilient with a strong market position and high recurring revenues [20]. Portfolio Activity - New position established in **Nintendo**, which is expected to see significant growth following the release of the Switch 2, with anticipated earnings growth of 30% annually over the next few years [23]. - Positions in **Teleperformance** and **Siemens Healthineers** were eliminated due to ongoing business challenges, reallocating funds to invest in Nintendo and Tencent [25][26]. Market Outlook - The outlook for the Portfolio remains positive, with expectations of benefiting from structural trends such as technology shifts and growth in emerging markets like India [27].

Core Insights - MercadoLibre is regarded as the "Amazon of Latin America" and has gained significant popularity among retail investors [1] Group 1: Company Analysis - The company has been recognized for its strong fundamentals and good cash flows, making it an attractive investment opportunity [1] - The focus is on long-term value investing, with an emphasis on identifying undervalued companies that have been overlooked by the market [1] Group 2: Investment Strategy - The investment strategy includes a preference for sectors like Oil & Gas and consumer goods, particularly those that are undervalued for unjustified reasons [1] - The company also engages in deal arbitrage opportunities, indicating a flexible approach to investment [1]

Core Insights - The discussion centers around two key growth investment picks for 2026: MercadoLibre (MELI) and Bloom Energy (BE) [3][4]. MercadoLibre (MELI) - MercadoLibre is the market leader in e-commerce and fintech in Latin America, boasting a strong logistics network and brand recognition [15][18]. - The company has shown impressive growth, with revenue increasing by 39% in U.S. dollars and 49% in constant currencies in the most recent quarter [21]. - Unique buyers in commerce grew by 26%, reaching 76.8 million customers, indicating significant market penetration potential [22]. - The fintech platform is also expanding rapidly, with a 41% increase in total payment volume (TPV) in U.S. dollars and 54% in constant currencies [24]. - Despite recent contractions in profit margins, the company is investing for long-term growth, which is expected to yield substantial returns [25][55]. - The e-commerce market in Latin America is still underpenetrated, with only 15% of retail sales occurring online, suggesting years of growth ahead [46][47]. - The company is strategically positioned to capitalize on the growing demand for financial services in underbanked regions [48][49]. Bloom Energy (BE) - Bloom Energy specializes in solid oxide fuel cells, providing on-site power solutions that can be deployed much faster than traditional energy sources [79][80]. - The company is positioned to address urgent energy needs, particularly for data centers, with a significant growth forecast of 71% revenue growth [88]. - Bloom Energy's technology allows for rapid deployment, typically within 90 days, compared to years for grid or nuclear solutions [81][82]. - The company has a strong customer base, including major players like Oracle and Equinix, and is moving towards gigawatt-level energy supply with new capital partnerships [96][97]. - The energy sector is expected to see a significant increase in demand, particularly driven by AI and data center growth, creating a favorable market environment for Bloom Energy [93][94].

Core Insights - Mercado Libre is evolving its fintech services, particularly through its platform Mercado Pago, aiming to become the largest digital bank in Latin America by focusing on user engagement and primary financial relationships [2][4]. Group 1: Strategic Evolution - Mercado Pago has transitioned from a payments wallet to a comprehensive digital banking service, emphasizing its leading Net Promoter Score (NPS) in Brazil, Mexico, and Argentina [2]. - The company aims to establish itself as the primary financial relationship for its 72 million active users, indicating a strong focus on user engagement and relationship depth [2]. Group 2: Technological Advancements - The potential of Generative AI (Gen AI) is highlighted for enhancing underwriting processes and providing personalized financial advisory services, which could significantly improve user experience [2]. - The use of Large Language Models (LLMs) is expected to yield stronger insights from the data collected, further enhancing the company's service offerings [2]. Group 3: Market Position and Opportunities - Mercado Libre operates in 18 countries, providing a wide range of e-commerce and financial technology solutions, which positions it well to capitalize on the high growth potential in the Latin American market [4]. - The company is focused on creating intuitive solutions tailored to local cultures, aiming to transform the lives of millions in the region [4].

Pricing power is one of the best qualities to look for in a business. It means a company's product is so valuable to customers that it can raise prices without losing demand. Over time, that kind of leverage helps companies stay profitable during rough economic patches. Two consumer-facing leaders showing that kind of strength today are MercadoLibre (NASDAQ: MELI) and Chipotle Mexican Grill (NYSE: CMG). Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 1 ...