petecoves

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    • Calling Today A Short-Term Bottom for Financials [view article]
      There is not one person on this blog that has backed up thier opinions with any facts. (it sounds like jiberish)
      The author is absolutely correct period.
      And another poin, is that I'm sure this will not help the Financial bears -sell on the opening so you don't lose your shirt!

      Just now, securities regulators issued an emergency rule on Tuesday to limit certain types of short selling in major financial firms, including Fannie Mae and Freddie Mac.

      The rule is the latest effort by the U.S. Securities and Exchange Commission to clamp down on market manipulation that some blame for the sharp declines in financial stocks and the demise of investment bank Bear Stearns in March.
      The rule will go into effect on Monday, July 21, and last through July 29, although it could be extended to last up to 30 days. The SEC said it will consider rules to address short selling issues across the entire stock market.
      The emergency rule applies to 19 financial firms including Lehman Brothers, Goldman Sachs, Merrill Lynch, Morgan Stanley, JPMorgan Chase & Co and Citigroup Inc.
      Jul 15 11:04 PM
    • The Best and Worst Performers Since Last Rate Cut [view article]
      PREVIEW-EU executive nears ruling on credit cards
      Sun Dec 16, 2007 8:42am EST
      By Huw Jones

      BRUSSELS, Dec 16 (Reuters) - Europe's credit card industry expects a landmark ruling from the European Commission on fees this week that may determine the range of cards consumers will have in their wallets in future.

      EU Competition Commissioner Neelie Kroes is expected to say that MasterCard (MA.N: Quote, Profile, Research) must cut the so-called interchange fee it sets on the chain of banks that allow a customer to buy goods and services outside their home state, industry officials say.

      Kroes has said consumers are being "ripped off" by card fees and the ruling will reverberate widely.

      Twelve of the EU's 27 member states are also waiting for Kroes' decision as it will shape how they deal with interchange fees charged by domestic card schemes.

      It will also affect fees set by MasterCard's arch-rival Visa Europe -- the two were dubbed by Kroes in January as "an effective duopoly" that make "outrageous profits".

      The decision will also determine whether it is economic for new entrants to compete with the two schemes that dominate international credit card payments in the EU.

      International transactions account for 3 percent of card usage but this is expected to grow as barriers to cross-border services are torn down and people become more mobile.

      Retailers say they are fed up with forking out billions of euros on a fee that includes provision for non-payment, fraud, promotions and free credit.

      Shops insist they should only be paying "at par" or only for the actual electronic transaction needed to complete a purchase. This would save retailers 10 billion euros a year just on MasterCard, lobby Eurocommerce has said.

      Banks that issue the cards say if the Commission slashes the fee, it could push up annual card fees and make it uneconomic for new schemes to be set up to rival MasterCard and Visa.

      This, the banks say, would mean that the EU's 490 million consumers would have to rely on the two main firms for cross-border payments.


      MORE COMPETITION

      The average interchange fee set by MasterCard is 1.1 percent of the transaction.

      Visa Europe has already agreed to cap its interchange fee at 0.7 percent in a multi-year deal with the European Commission that runs out at the end of December.

      People familiar with the two companies say Kroes is expected to say that MasterCard should cut its interchange fee to somewhere below 0.7 percent as she will also want to push down Visa's fee when it comes to negotiating a new multi-year deal with them next year.

      Nobody expects Kroes to scrap interchange fees and MasterCard may even be given time to cut its fees in stages.

      MasterCard says it should keep the principle of setting its own fees and that the EU executive has no power to cap them.

      It fully expects a ruling that will be negative for the company and has already mapped out its appeal, leaving only the question of whether it can persuade the court to suspend the ruling until the appeal process is completed.

      Credit card industry officials say Kroes should not follow the example of the Reserve Bank of Australia which last year slashed interchange fees.

      Card industry officials say the result was a rise in annual card fees and one player dropping out of the sector.

      Next month, the EU launches a single euro payments area that aims to make cross-border credit transfers, card payments and direct debits as easy and cheap as domestic ones.

      Kroes and the European Central Bank hope it will spur competition in card payments but so far no new credit card scheme is ready to launch as the whole industry is waiting to see what impact Kroes' decision will have on business models.

      Earlier this month, Kroes said new schemes need not cover all EU countries from the start, a plea which card industry officials said sounded desperate.

      (Reporting by Huw Jones, editing by Erica Billingham)

      Dec 17 04:43 AM
    • Financial Stocks That Have Avoided the Credit Crunch [view article]
      FXE in downtrend will hurt earnings in future - Mastercard 10Q

      Impact of Foreign Currency Rates

      Our operations are impacted by changes in foreign currency exchange rates. In most regions, except Europe, assessments are calculated based on local currency volume converted to U.S. dollar volume using average exchange rates for the related assessment period. In Europe, the non-euro volumes are converted to the euro. As a result, assessment revenues are impacted by the overall strengthening or weakening of the U.S. dollar or euro compared to the foreign currencies of the related local volumes in each period. In the three and nine months ended September 30, 2007, the U.S. dollar weakened as evidenced by a 16.6% and 17.4%, respectively, increase in gross dollar volume ("GDV") on a U.S. dollar converted basis exceeding local currency GDV growth of 12.8% and 14.1%, respectively, compared to the same periods in the prior year.

      We are especially impacted by the movements of the euro relative to the U.S. dollar since the functional currency of MasterCard Europe, our principal European operating subsidiary, is the euro. The strengthening or devaluation of the U.S. dollar against the euro impacts the translation of MasterCard Europe's operating results into U.S. dollar amounts
      Dec 11 09:51 PM
    • Financial Stocks That Have Avoided the Credit Crunch [view article]
      Instead of riding the wave up like many investors do, and then end up losing a significant amount of money whe the stock collapses. You should be giving investors reason for pause. If this was the best consumer market in te history of Masterercard, it still overvalued at current levels.

      1) Price to sales 7 S&P 1.5
      2)PE 33
      3)price to cash flow 31
      4)Peg Ratio 2.01
      5)RSI 75 anything over 70 is considered overbought.
      6) Legislative risk
      7) Sept 9,08 Trial with AXP -They could be liable for 3 Billion dollars
      8) EU commission ruling on interchange fees.

      But no, Just jump on the bandwagon like everyone did at the top of the Homebuilders & financials.
      Dec 11 08:08 AM
    • Blackrock Cleans Up Florida; Its Role Will Grow as Economy Worsens [view article]
      I find it surprising the you mention mastercard, Chart on most stock look fantastic right before the implode. I'm sure Lucent had a prety good lookng chart at onetime.

      However, I would beg to differ where mastercard is going.
      At this point in time mastercard maintains an extremely vulnerable fundamental and technically.

      First fundamentals:
      Mastercard trades : price to sales of 7 (avg S&P co. is 1.5)
      PEg ratio 2 - anything over 2 is considered dagerous.
      Price to cash flow: 33
      Huge Insiders selling incuding Goldman Sachs.

      Potential damaging litigation From AXP for 3 Billion dollars
      EU Commission looking to eliminate interchang-fees altogether which could translate into billions of dollars in lost revenue.

      US congrees fighting to lowe fees and revamp entire system.

      Technically RSI at 70 - considered overbought condtion
      broke a new high, however closd below it previous new high - negative divergence.
      Climatic Top Pattern

      Dec 07 01:10 AM
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