$MELI could be done falling (3/5)Conviction: 3/5
could have another leg down to touch lower channel line (2008)
General Thesis
could have finished 3 leg down correction
Weekly RSI at oversold levels - historically only touches this level once before bouncing
Growth
Margins are consistently falling since 2011
revenue growth trending up, new ATH
Value
P/FCF expensive (negative FCF)
P/S below historical average, come down a lot since peak in 2021
Fundamentals & Balance Sheet
low debt to asset (<1)
good quick ratio (>1)
Potential Risks
expensive P/FCF
data does not contain last recession
another leg down to touch trend support?