Trade Me downgraded to Hold

We still like Trade Me’s business but the price is less appealing above $4.00.

Trade Me has performed well since we upgraded the stock just over two years ago. Australian shareholders have received a total return of 32% (including dividends) over the period and we remain confident about the company’s future.

That said, the stock is less attractive at current prices and is now well above our $4.00 buy limit. The story is unfolding as expected so far, although we’d love another opportunity to buy. For now we’re downgrading to HOLD.

Note: The Intelligent Investor Growth and Equity Income portfolios own shares in Trade Me. You can find out about investing directly in Intelligent Investor and InvestSMART portfolios by clicking here.

Disclosure: The author owns shares in Trade Me.

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