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Stock Market & Financial Investment News

News Breaks
May 16, 2014
16:05 EDTMELIMercadoLibre sees Q2 charge of $47M-$57M
MercadoLibre announced that it will no longer use Venezuela's SICAD 1 floating exchange rate, which is currently at 10 bolivars per U.S. dollar, and that the company has adopted the SICAD 2 floating rate of approximately 50 bolivars per U.S. dollar. Pedro Arnt, CFO, commented, "MercadoLibre remains committed to our business in Venezuela, which continues to show consistent growth in underlying business metrics. At this moment, given the existence of an additional legal exchange rate, it makes sense for us to report our Venezuela segment at SICAD 2 in order to provide a more accurate representation of our earnings in the country." Since January 24, MercadoLibre reported its Venezuela results at the SICAD 1 rate, which fluctuated between 10 and 11.8 bolivars per dollar, but the company was never able to access this rate to convert currency. MercadoLibre had previously used the official rate of 6.3 bolivars per dollar, the only published legal rate allowable for translation of currencies at the time according to U.S. GAAP. Given its lack of access to the SICAD 1 rate and the greater likelihood of settling transactions at the SICAD 2 rate, MercadoLibre has determined that it will use SICAD 2 as the exchange rate to re-measure its bolivar-denominated monetary assets and liabilities and to re-measure the revenues and expenses of its Venezuelan subsidiaries, effective as of May 16. As a result of this change, MercadoLibre expects to incur a one-time re-measurement charge between $47M-$57M dollars in the second quarter due to the write-down of all of its bolivar-denominated assets. Furthermore, the company also expects to recognize a foreign exchange loss of between $14.5M-$21.5M and a deferred income tax gain of between $6.5M-$9.5M derived from the loss on foreign exchange related to the revaluation of its dollar-denominated liabilities during the second quarter. Finally, MercadoLibre estimates that the change to SICAD 2 will reduce second quarter revenues from its Venezuelan segment by approximately $12M-$18M versus same period revenues had the change in exchange rate not occurred.
News For MELI From The Last 14 Days
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May 19, 2015
07:43 EDTMELIJPMorgan to hold a conference
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May 12, 2015
10:01 EDTMELIOn The Fly: Analyst Downgrade Summary
Today's noteworthy downgrades include: AG Mortgage (MITT) downgraded to Market Perform from Outperform at Keefe Bruyette... Brookfield Renewable (BEP) downgraded to Underperform from Neutral at Credit Suisse... Emera (EMRAF) downgraded to Equal Weight from Overweight at Barclays... Fibria Celulose (FBR) downgraded to Neutral from Buy at Citigroup... First Marblehead (FMD) downgraded to Neutral from Buy at Compass Point... First Security (FSGI) downgraded to Market Perform from Outperform at Raymond James... Gap (GPS) downgraded to Market Perform from Outperform at FBR Capital... Intelsat (I) downgraded to Underweight from Equal Weight at Morgan Stanley... LivePerson (LPSN) downgraded to Neutral from Outperform at Credit Suisse... MercadoLibre (MELI) downgraded on valuation, difficult comps at Stifel... Midway Gold (MDW) downgraded to Underperform from Outperform at RBC Capital... Numerex (NMRX) downgraded to Market Perform from Outperform at Northland... Portland General Electric (POR) downgraded to Neutral from Overweight at JPMorgan... Rackspace (RAX) downgraded to Outperform from Buy at CLSA... Rosetta Resources (ROSE) downgraded to Sector Weight from Overweight at KeyBanc... SouFun (SFUN) downgraded to Hold from Buy at Deutsche Bank... Verizon (VZ) downgraded to Underperform from Neutral at Macquarie.
07:08 EDTMELIMercadoLibre downgraded on valuation, difficult comps at Stifel
As noted earlier, Stifel downgraded MercadoLibre to Hold from Buy. As reasons for the downgrade, the firm cited valuation and more difficult comps for initiatives recently launched by the company.
06:07 EDTMELIMercadoLibre downgraded to Hold from Buy at Stifel
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