or is this just a pure takeover play???
So, I assume that you think BIDU is over-valued at 42x 2009 also, right? (that's where it currently trades)
BIDU has its market under "one roof" & fairly valued, MELI is all over the place. MELI is an excellent company, just the stock seems a bit too expensive for my taste. Look at argentina's economy... too much uncertainty in South America.
my take is given the Global slow down in growth the upside is limited. even if doubles its net earnings a year from now. You're looking at its fair value today.
what does analysts expect MELI to have? is it $0.09/share?
i'm thinking more of .04 - .06 range.
its seems that ebay bought a stake in MELI out of fear rather than adding value ...
ebay has different strategies, watch their cnbc special or listen to ebay's calls
its a revenue story.