Diamonds and Dogs
Brazil may be in the midst of its worst recession in decades, but thier citizens still love to shop online. Latin American online retail firm, MercadoLibre (MELI) is up 6% to a new 52 week high thanks to an upgrade at JP Morgan with a $200 price target. The analyst mentioned that earnings are growing at 40% fueled in part by thriving operations in Brazil. Revenue growth in the country of Brazil reached 61% year over year. Maybe the Olympics helped out.
Investors are hanging up on VeriFone Systems (PAY). The electronic payment and solutions provider's stock is down 16% to a new 52 week low following better than expected earnings. The earnings were good, but the guidance was weak. The company now expects fourth-quarter adjusted earnings of 28 cents to 29 cents on $460 million in revenue, far below analysts' predictions of earnings of 50 cents per share on revenue of $536 million. Management said they are managing through what they believe are difficult but temporary local market issues. The stock is down 50% year to date. Lets hope they are right.