Workinprogress'  Instablog

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I am using Seeking Alpha to read articles, find worthwhile stocks, and give feedback on various situations. I have not been studying this field for very long, but I am glad that I decided to invest some time in it. I have not yet graduated from high school, but that is not a way to hinder me.
  • Pair Of Credit Card Companies- Mastercard Vs. Visa 0 comments
    May 1, 2012 8:53 AM | about stocks: V, MA

    I've been looking at two major credit card ETFs lately, Mastercard (NYSE:MA) and Visa (NYSE:V). To get an overview of their behavior, take a look at this graph from

    (click to enlarge)

    The behavior of the two stocks has been quite similar over the past year but there are some distinctions between the two. Mastercard's 52 week range is $204.01, while Vista's 52 week range is much smaller, only $51.11. Therefore, MA is more volatile as its stock value changes faster. Interestingly, both companies have no debt.

    Also, the beta factor of MA has decreased in the recent time period, while that of V has increased.

    Candlestick graphs are always great to have access to. Here is one for Visa (over 6 months):

    (click to enlarge)

    While Visa has been going primarily upward, it has yet to "fill in a gap" that was created a little less than three months ago, around the beginning of February 2012.

    Particularly recently, the stock alternates between having a few bearish days and a few bullish days, and as a result, since this began to happen, the price of the stock did not changed much (during that time period).

    In conclusion, it seems that either choice would be risky, and a this point I would be hesitant to buy or short either stock. However, because of MA's higher price (and therefore a higher probability to gain or lose more), then if you really want to buy one of these, go with Visa if you are a conservative investor, or Mastercard if you are willing to take a fairly large risk.

    Thanks to for graphs and for data.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in V, MA over the next 72 hours.

    Stocks: V, MA
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