Discovery Communications: A Natural Investment [View article]
Hey Esekla,
I didn't have time to dig into the earnings in great detail yet but it looks like ad revs (domestic and international) climbed, total rev came in well. The EPS miss was large, but seems attributable mostly to the recent acquisition as well as tax-related. Stock did very well considering.
In another note, AMCX has been acting well, very nice trade (although I did not trade it myself). It is no longer cheap and is probably due for a correction, I know how you feel about that one.
MasterCard Deserves All The Credit, And Your Money [View article]
Hey Stu,
Yeah, I'm showing a 1-4% differential as of today on the two-year chart (that's just me looking quickly) so it's been very close the last few years. I believe MA will outperform going forward but I do think an investor will do very well with both in the long run, which is why I won both ; ) There are a few other things I like about MA over V: I always tend to like the smaller company (by market cap), I like the lower share count, I like the fact that MA Foundation has always owned such a large portion of shares. I hope I've helped, best of luck!
MasterCard Deserves All The Credit, And Your Money [View article]
Eduso,
I did some research into it but not extensive yet, but what I see I do like, it has the making of a very lucrative investment (very small company with rapid growth and it's at cheap valuations). The concept of a branchless bank is very interesting and BOFI seems to operate out of just one location in San Diego. My main question is, as you said yourself, why isn't this more widespread, or is it? It seems Everbank (EVER) is the company's closest competitor. Again, I'm eager to learn more. Thank you for bringing it to my attention and I'll try to keep you posted as well when I do my analysis.
Grainger: When Decent Growth Meets Excellent Dividend Growth [View article]
James,
I like both although I would recommend VFC over GWW because I feel the growth is stronger, although today's report from Grainger is encouraging. Both have not been acting too well over the last year. I do still think the $200 level is in the cards. I would also urge you to take a look at Church and Dwight (CHD), this is one with growth and serious dividend growth. The stock has recently ran away without me but since you mentioned you like companies with sub-10 billion market caps it is one to consider as well. Great little company that is really doing a terrific job at pretty much everything they try.
This Great American Auto Manufacturer Has 50% Upside [View article]
Oxen Group,
I really like the fact that you mention Twitter followers because, as foolish as it may sound to some, I think it is a very good indicator as it judges the company and its products/services from a pure consumer point-of-view. I've done it with a lot of the stocks I follow although I've never mentioned it an article because on some level I've felt most people would simply not buy into it. It's nice to see that another contributor feels the same way. Nice analysis as well, enjoyable read.
MasterCard Deserves All The Credit, And Your Money [View article]
Stu,
I recognize the 10% and 13% currency difference and the CEO addressing that specifically however I do not know offhand what specifically caused the 10 point decline and I'd rather not guess and give erroneous information. As for mobile (PayPass), which is definitely small compared to the majority of MA's revenue, the company does not disclose any breakdown of it compared to total revenues and dollar amount, as far as I know. I'll try to find out more info though.
MasterCard Deserves All The Credit, And Your Money [View article]
And as for why Visa has outperformed MasterCard over the last year, the main reason is because, minus the settlement charges which had a larger impact on V in 2012, Visa grew at better rates last year: the revenue growth of V in 2012 was 13.3% compared to MA's 10.1% and the EPS growth was 24% for V compared to 17% for MA (again that's without the one-time charges which I noted under the growth rate table). Projections call for slightly better combined growth for MA than V over the next two years, and MA is currently a bit cheaper which is a reason I prefer MA. Hope all that helped you.
MasterCard Deserves All The Credit, And Your Money [View article]
MasterCard Foundation is the company's charitable foundation and for as long as I've been a shareholder (since early 2009) the foundation has had a stake around 10%. Every once in a while you will see the MasterCard foundation sell shares, I always remember it being in approximately 3,700 trade blocks at a time and they use the proceeds for charitable donations around the world. Here's a link so you can see some of what the company does with the money: http://bit.ly/X2r6FP
MasterCard Deserves All The Credit, And Your Money [View article]
You're very welcome Stu and thanks for commenting and for the questions. MA and V are basically money-generating machines and a large portion of cash has been used for buybacks but the two have also been using the cash to pay off significant legal settlements over the last few years. MasterCard's latest announced buyback is for $2 billion in stock and comes on the heels of last year's $1.5 billion buyback, which has about $400 million left. I believe management is doing what it can with dividends, returning approximately $300 million a year to shareholders through dividends (2013). The dividend growth is admirable but I think we will see significant yield only when revenue/EPS growth begins to slow down the road.
MasterCard Deserves All The Credit, And Your Money [View article]
Eduso,
I am not familiar with BOFI but after taking a quick look at the sales/EPS growth I have to say that it is impressive, the chart is equally impressive. Very consistent as you say and a very interesting find in general. I will do more research into this one, you've caught my eye definitely.
The MA lobbying must be very low key, as you say, as I am having trouble even finding any news on it. I only know of the news from early 2012 in regards to the company's unsuccessful fee challenge but I'd be curious to hear what you find in your research. Thanks for the comment and for bringing BOFI to my attention.
MasterCard Deserves All The Credit, And Your Money [View article]
Well said SouthernS, aside from a few risks as mentioned towards the end of the article I believe MA is a great investment for the future, it could even be a future 'dividend champion' down the road. Thank you for the comment.
MasterCard Deserves All The Credit, And Your Money [View article]
Ozcutty,
Very good points, I was having a conversation with someone a few weeks ago about the buybacks and how they were just starting to ramp up. The key for me with buybacks is not so much the amount of money spent purchasing back shares but the consistency in which the company keeps initiating new buyback programs, MA has done very well recently with this. The dividend has a very nice growth rate and I believe will become significant down the road, maybe once growth slows a bit.
I really feel an investor will do well with both MA and V but MasterCard is the best of breed and my favorite stock currently. Thanks for the comment and best of luck, although with MA you probably won't need much luck ; )
VF Corporation: The Right Mix Of Dividends And Growth [View article]
Sstadler,
VFC is a very nice buy and hold and it's perfect for an IRA, congrats! I am also a little surprised the stock has not split lately, the last split was back in 1997. There is no doubt that a split can help the trading of a stock, if only for the reason you say, it can encourage additional buyers. It also creates more shares and should lessen volatility a bit. At the very least, you're right, it definitely can't hurt. I would look at it as a positive and I think there's a chance we will see it in the next few years, hopefully. Thanks for the comment and good luck.
Discovery Communications: A Natural Investment [View article]
I didn't have time to dig into the earnings in great detail yet but it looks like ad revs (domestic and international) climbed, total rev came in well. The EPS miss was large, but seems attributable mostly to the recent acquisition as well as tax-related. Stock did very well considering.
In another note, AMCX has been acting well, very nice trade (although I did not trade it myself). It is no longer cheap and is probably due for a correction, I know how you feel about that one.
Phil
MasterCard Deserves All The Credit, And Your Money [View article]
Yeah, I'm showing a 1-4% differential as of today on the two-year chart (that's just me looking quickly) so it's been very close the last few years. I believe MA will outperform going forward but I do think an investor will do very well with both in the long run, which is why I won both ; ) There are a few other things I like about MA over V: I always tend to like the smaller company (by market cap), I like the lower share count, I like the fact that MA Foundation has always owned such a large portion of shares. I hope I've helped, best of luck!
Phil
MasterCard Deserves All The Credit, And Your Money [View article]
I did some research into it but not extensive yet, but what I see I do like, it has the making of a very lucrative investment (very small company with rapid growth and it's at cheap valuations). The concept of a branchless bank is very interesting and BOFI seems to operate out of just one location in San Diego. My main question is, as you said yourself, why isn't this more widespread, or is it? It seems Everbank (EVER) is the company's closest competitor. Again, I'm eager to learn more. Thank you for bringing it to my attention and I'll try to keep you posted as well when I do my analysis.
Phil
Discovery Communications: A Natural Investment [View article]
Grainger: When Decent Growth Meets Excellent Dividend Growth [View article]
I like both although I would recommend VFC over GWW because I feel the growth is stronger, although today's report from Grainger is encouraging. Both have not been acting too well over the last year. I do still think the $200 level is in the cards. I would also urge you to take a look at Church and Dwight (CHD), this is one with growth and serious dividend growth. The stock has recently ran away without me but since you mentioned you like companies with sub-10 billion market caps it is one to consider as well. Great little company that is really doing a terrific job at pretty much everything they try.
This Great American Auto Manufacturer Has 50% Upside [View article]
I really like the fact that you mention Twitter followers because, as foolish as it may sound to some, I think it is a very good indicator as it judges the company and its products/services from a pure consumer point-of-view. I've done it with a lot of the stocks I follow although I've never mentioned it an article because on some level I've felt most people would simply not buy into it. It's nice to see that another contributor feels the same way. Nice analysis as well, enjoyable read.
Phil
MasterCard Deserves All The Credit, And Your Money [View article]
I recognize the 10% and 13% currency difference and the CEO addressing that specifically however I do not know offhand what specifically caused the 10 point decline and I'd rather not guess and give erroneous information. As for mobile (PayPass), which is definitely small compared to the majority of MA's revenue, the company does not disclose any breakdown of it compared to total revenues and dollar amount, as far as I know. I'll try to find out more info though.
MasterCard Deserves All The Credit, And Your Money [View article]
Phil
MasterCard Deserves All The Credit, And Your Money [View article]
MasterCard Deserves All The Credit, And Your Money [View article]
MasterCard Deserves All The Credit, And Your Money [View article]
MasterCard Deserves All The Credit, And Your Money [View article]
I am not familiar with BOFI but after taking a quick look at the sales/EPS growth I have to say that it is impressive, the chart is equally impressive. Very consistent as you say and a very interesting find in general. I will do more research into this one, you've caught my eye definitely.
The MA lobbying must be very low key, as you say, as I am having trouble even finding any news on it. I only know of the news from early 2012 in regards to the company's unsuccessful fee challenge but I'd be curious to hear what you find in your research. Thanks for the comment and for bringing BOFI to my attention.
Phil
MasterCard Deserves All The Credit, And Your Money [View article]
Phil
MasterCard Deserves All The Credit, And Your Money [View article]
Very good points, I was having a conversation with someone a few weeks ago about the buybacks and how they were just starting to ramp up. The key for me with buybacks is not so much the amount of money spent purchasing back shares but the consistency in which the company keeps initiating new buyback programs, MA has done very well recently with this. The dividend has a very nice growth rate and I believe will become significant down the road, maybe once growth slows a bit.
I really feel an investor will do well with both MA and V but MasterCard is the best of breed and my favorite stock currently. Thanks for the comment and best of luck, although with MA you probably won't need much luck ; )
Phil
VF Corporation: The Right Mix Of Dividends And Growth [View article]
VFC is a very nice buy and hold and it's perfect for an IRA, congrats! I am also a little surprised the stock has not split lately, the last split was back in 1997. There is no doubt that a split can help the trading of a stock, if only for the reason you say, it can encourage additional buyers. It also creates more shares and should lessen volatility a bit. At the very least, you're right, it definitely can't hurt. I would look at it as a positive and I think there's a chance we will see it in the next few years, hopefully. Thanks for the comment and good luck.
Phil