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paul_0q8de

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MELI·9 days agoMercadoLibre Graded Its Own Homework — And Passed

They issued 1 million credit cards. Every time they issue a credit card they need to book an accounting provision for possible bad debts as a % of the total credit given. i don't know the % but its high. So day 1 of issuance you have zero revenue and high "losses". You need to add the increae in creadit card balances (an asset) to your cashflow to get a truer picture.Something similar for all the new POS machines purchased for Mexico. This impacts their net margin but you should see this reverse in a quarter or two.My biggest holding by far Paul

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