"OLX Autos Exits Some Markets; 800 Jobs Slashed Globally OLX Autos will exit Argentina, Mexico and Colombia, where they were not able to find buyers, the company said."
The situation in South America is not looking great. These online classified business can be worth zero and even cost money through redundancies if you can't find a buyer. OLX Auto backed by giant Prosus chose to shutdown operations even though they have deep pocket.
FDV has exposure to auto classifieds in the region through Encuentra24 and Yapo.
Even worse OLX Auto will focus on Chile intensifying the competition with Yapo.
The day FDV becomes cash-flow positive (which has never happened yet) might be further away.
I've got a feeling that the current sell-off is more than just tax-loss selling.
FDV Price at posting:
32.8¢ Sentiment: None Disclosure: Not Held
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