Mastercard Incorporated (MA)

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  • commenter
    VCASHCOW
    Jul 24 04:53 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    mojo - You should buy (JBHT) when it becomes oversold. Now thats a monster of a performer. Reply
  • commenter
    VCASHCOW
    Jul 24 04:50 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    mojo7489 - Visa and Mastercard will not lose big banks as customers as they have no alternatives to electronic payment processing. The banks created these giants and receive fees from the merchants when Visa and Mastercard are swiped, furthermore the governement will not allow a bank like Wachovia or Bank of America to fail.

    Bank of America would love to create their own brand of card, however, they currently do not have the capital to develop their own payment platform.

    The barriers to entering this business are hugh and the banks shot themselves in the foot by allowing this oligopoly to go on for so long.

    You should already know that the banks sold the majority of their Visa Shares after the IPO. Why do yout think their recovery was so overstated in 04/2008 (They made millions from the IPO).

    V & MA are great stocks but there are clearly risks involved. At this juncture the risks are outweighed by the great potential in emerging markets as stated above by Adesai. The growth in emerging markets will offset any roadblock in the U.S. over the next 3-4 years. Adesai hit it on the nose man.

    mojo - I know you like AXP as they have a great track record, but AXP is not in favor and their business model of handing out free money in the hopes that consumers will repay is bound to burst.     Reply
  • commenter
    Cat~eyes
    Jul 24 11:27 AM
    My Website
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    I think Amex will be around in 2 years..of course, I just don't think some of the banks will be.

    And yes... ALL stocks now matter what sector, will have highs and lows..it's one big roller-coaster ride.     Reply
  • commenter
    mrbill for V
    Jul 24 07:43 AM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    Hanoch, good points, very level headed comments, i have to laugh when
    i hear comments like AMX won't be around in two years. All stocks including V and MA will experience all time lows and highs.     Reply
  • commenter
    Cat~eyes
    Jul 23 11:22 PM
    My Website
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    Adesai: Good to see you.. you're right on with the data regarding the rapid global growth that both V and MA are experiencing.

    I know 90% of the people here understand this but let me re-state it.

    1. Visa and MasterCard are in the Services sector. American Express is in the Financial sector. Apples and Oranges.

    2. Visa and MA will NEVER turn into a credit issuer as a previous poster suggested, they will never be worried about whether someone defaults on their credit or pays on time.

    3. As a poster here pointed out, Amex is experiencing huge amounts of large credit line defaults - again, an issue V or MA will never have to deal with.

    4. "Although charge-offs are picking up recently, that's not a big deal, these losses can be offset by hiking overall rates on customers, or hiking fees on Merchants" - mojo

    - Yeah... and the consumers are just going to rush right out and apply for Amex because they want to pay the extraordinary fees that won't amount to a drop in the bucket in terms of making up for the huge charge-offs and credit defaults Amex is dealing with now.

    5. I'm pretty sure I won't look back in 2 years and wish I'd bought a few shares of Amex today.
    Even though I think financials will eventually come up for air. There are just some credit issuers, lenders, and banks that won't survive long enough to catch that life-saving breath.
    Reply
  • commenter
    Adesai
    Jul 23 07:27 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    Mojo is an idiot, its clear he loss some $$$ in Amex and DFS.

    Have you seen MA chart for the last 2-3 years. Its on a steep incline.... WHY???? MA and V is targeting developing countries. In china 1 in 30 owns a cc; in india its about 1 in 60. These are huge potential markets. Global trend from cash to credit is occuring at a exponential rate. With the summer olympics along with huge chinese/ indian/ middle eastern banks investment in V, look for about 10-15% increase in credit card transaction year on year, which is what CEO saunders has predicted. Suntrust has a price target of $100 which is what V willl likely be trading at within several months.

    Amx and DFS will likely be bankrupt or be in the red within several years.     Reply
  • commenter
    mojo7489dump
    ass
    Jul 23 06:53 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    mojo7489, you are really a dump ass Reply
  • commenter
    mojo7489
    Jul 23 05:57 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    I still think Ian cooper is an idiot. Some consumers are cash strapped, most of American are doing just fine. Amex's problem is really Amex's problem. The numbers of people who defaulted on loans at Amex felt to 5 years low, (Amex Master Trust), but the loan balance per default account doubled from three years ago. One possible reason? It juiced up spending volume by giving people too high of credit limits. I don't like Amex for now.

    MasterCard and Visa are equally toxic. What's stopping a large card issuers from switching its card to Visa from MasterCard, or vice versa? Prices. Visa, MasterCard and Discover will be in a pricing war to get cardissuers to issue their card.

    I like Discover, its earning is still strong. Although charge-offs are picking up recently, that's not a big deal, these losses can be offset by hiking overall rates on customers, or hiking fees on Merchants, and lower funding costs due the lower interest rate cut by the FED

    Visa and MasterCard's loyalty lies with large banks. Top 10 banks control almost 70% of the transaction volumes, losing one large client will see the stock price fall off a cliff. That will happen after banks sell their stocks in MasterCard and Visa.

    Visa and MasterCard are like emperors without clothes, they don't have any direct relationship with consumers. Their futures are in the hands of large banks.

    I wouldn't touch V and MA with a 10 foot pole, these two stocks are the trainwreck waiting to happen, after about 1-2 years from now. People who buy these two stocks don't understand Microeconomics     Reply
  • commenter
    Bright
    Jul 23 08:42 AM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    Very insightful and I agree. Although we do not hold a crystal ball. "Do you?" Let me know. Reply
  • commenter
    Kunst
    Jul 23 01:37 AM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    American Express is more expensive than Visa and Mastercard on both the consumer and merchant side. We have dumped them on both. I just don't see what makes them special enough to command a premium. Reply
  • commenter
    truthinvesti
    ng
    Jul 23 12:28 AM
    My Website
    The Dow, Housing, Oil and Credit Cards [view article]
    On my free website my"bargain bin" website has been profitabl and almost all these stocks are or have been picks.Nice article Reply
  • commenter
    greencapital
    ist
    Jul 22 10:36 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    adding axp? my friend be slow to add though.

    you might want to buy ma. grossly undervalued at 2009 valuation trading lower than its projected 2009 growth.

    matrader.blogspot.com     Reply
  • commenter
    Hanoch
    Jul 22 07:20 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    VCASHCOW--No remorse here. In my view, even assuming a pretty horrible year, AXP is worth at least 50 (likely more), and I have been using this opportunity to add more. Thanks for the advice though. Time will prove one of us wrong. Reply
  • commenter
    bishk1301
    Jul 22 05:21 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    They are making a lot of money from merchant fees. They are serving affluent consumers. They are charging killer rates. The use of plastic is going to grow compared to cash. This company is being valued as if it were a business which is going to disappear. If the defaults continue rising they will raise rates and fees. V and MA are in a better condition now but they are fully priced and might come under additional pressure for monopolistic practices. Defaulting on credit card is harder than walking away from the home with negative equity, cause you have to continue to buy everyday's stuff. Doomsday sayers will know the wrath of rising markets one day. Excellent companies like AXP will blow short sellers away Reply
  • commenter
    VCASHCOW
    Jul 22 04:48 PM
    Credit Card Breakdown: AmEx Disappoints, as Predicted [view article]
    Hanoch - AXP maybe a well managed company, however, they're business model is extremely susceptible and overexposed when the American economy turns downward. It's clear from your blog that you're upset by not knowing when to pull the trigger and realize gains.

    By reviewing AXP's stock chart it's all but written in stone when you should have sold/pulled the trigger. If you do not like losing money you should buy (V), (MA), or (CAT).
    Reply

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