Trade Me: Result 2016

Trade Me’s result showed this company is no sloth. Past investments in the cost base mean profit growth is about to accelerate.

A year makes all the difference (apparently). Investors were petrified by New Zealand’s dominant online classifieds company Trade Me as it plummeted towards its final results release in August 2015. Undeterred, our ‘Buy’ was about as forceful as we get. In Trade Me: Result 2015 we declared: ‘On a 2016 forecast PER of 16, the stock is one of our better buying opportunities’.

Since then, the share price has jumped 77%, including 5% yesterday (or 44% since our initial 2014 upgrade). But why was the market so excited by a paltry 4% increase in 2016 underlying net profit (see Table 1)?



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles