Stone Fox Capital
Long/short equity, growth at reasonable price, research analyst, deep value

Xooming Money Transfer To Higher Margins

The recent 10-for-1 split announcement by MasterCard (NYSE:MA) should highlight the extreme profitability of facilitating financial transactions around the world. In fact, the market appears desperate for lower fee, cross border alternatives with the sudden rise in popularity of the Bitcoin, yet for investors very few growth companies exist that offer the opportunity to participate in the internet and mobile financial transaction arena. The previous mentioned MasterCard and competitor Visa (NYSE:V) have already reached market values around $100 billion and don't exactly offer new opportunities.

The interest in the financial transaction arena centers on the sizzling operating margins generated by leaders in their respective sectors. In Q313, MasterCard generated a sizzling 56.3% operating margin in the...

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