Online shopping is more popular than ever. The idea of using the Internet to find the best deals and have products delivered to your doorstep is an unstoppable force conquering the world.
However, different regions of the world are adopting e-commerce at different speeds.
E-commerce in South America is where it was in the US in 2009 – with a market penetration of just 6%. This compares to a current market penetration of 20% in the US, 28% in the UK, and 52% in China (predicted to reach 58% in 2024).
However, it's growing fast, because Latinos and Latinas aren't all that different from North Americans, Europeans and Asians when it comes to shopping. They, too, like bargain hunting on the web and having goods delivered home.
There is one Nasdaq-listed company that is to South America what Amazon is to the US. This is a quality company with a proven track record and many millions of customers.
Its stock has recently become cheap again.
And its fast-growing e-commerce division isn't the only reason why I have just urged Undervalued-Shares.com Members to take a closer look.
Seizing Latin America's e-commerce and fintech opportunity
It's not just e-commerce that has tremendous catch-up potential in South America, but also so-called "fintech" – the delivery of financial services through the Internet rather than through traditional banks.
Across South America, 50% of the population don't have a bank account yet. This stands in stark contrast to the US, where just 4% of the population are unbanked, or the UK with just 1% of its population. South America comprises a vast underserved market.
A new generation of Internet companies have started to offer Internet-based financial services to the 650m people living between Mexico and Argentina.
One of these companies has already risen to become South America's #1 ecommerce specialist. The same company is now working to become the #1 fintech specialist, too.
By offering both ecommerce and fintech services, this company is literally growing a new generation of customers. Once the unbanked can pay online, they will also shop online. And the company that makes it all possible gets to earn revenue from multiple layers of services. Think Amazon and PayPal wrapped into one company.
This particular company is using South America's idiosyncrasies to build an online ecosystem unlike any other. Its founder, CEO and major shareholder has a simple vision: to build the most valuable company of the continent. He already became a multi-billionaire in the process, but his plans go much further.
If you believe that South America's young, tech-savvy population will take to e-commerce in the same way as North Americans, Europeans and Asians, now would be a particularly opportune time to take a closer look at the stock. (And help is at hand, as I've dedicated an entire research report to this company. It's hot off the press, and just went out to Undervalued-Shares.com Members).
The stock has temporarily gone "On Sale"
Since its IPO in 2007, the stock has risen over 100-fold. However, along the way, it regularly experienced drawdowns – a decrease of between 30% and 50%.
So far, each drawdown was an opportunity to get in before the next massive leg up.
Over the past months, the stock has fallen 40%. It's drawdown time again!
As my latest report for Undervalued-Shares.com Members demonstrates, the recent volatility makes for an attractive entry point. There are four key metrics that show why the stock has become cheap again. Anyone who sees these figures (and wants to invest in the growth of Latin America's ecommerce and fintech sector) will immediately get why now is such a good moment to take a closer look.
For long-term investors interested in growth and with a time horizon of 3-5 years, this is a company worth checking out. Its stock has multiplied in the past, and it has plenty of potential for the future – all the more now that it's become 40% cheaper than just four months ago.
With an ecommerce penetration rate of just 6%, it provides you with an opportunity that is similar to buying Amazon stock in 2009.
Curious to learn more? Add my new report to your Christmas reading list 🎅
Investing in undervalued African stocks
A growing middle class, favourable demographics and affordable technologies are changing the entire economies of Africa.
How can investors profit from the continent's fast-growing digitisation? Is there a particular opportunity that you should look at? (Spoiler alert: yes, there is!) Which countries in Africa are worth a closer look - and which countries should you stay clear of?
Mikkel Thorup (Expat Money Show) and I set out to investigate.
Investing in undervalued African stocks
A growing middle class, favourable demographics and affordable technologies are changing the entire economies of Africa.
How can investors profit from the continent's fast-growing digitisation? Is there a particular opportunity that you should look at? (Spoiler alert: yes, there is!) Which countries in Africa are worth a closer look - and which countries should you stay clear of?
Mikkel Thorup (Expat Money Show) and I set out to investigate.
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