Seeking Alpha

poortorich

poortorich
Send Message
View as an RSS Feed
View poortorich's Comments BY TICKER:
Latest comments  |  Highest rated
  • MasterCard: The Valuation Debate And Growth Opportunities [View article]
    Its interesting how MA's share price actually increased, when earnings were "mediocre" , especially when compared to V. But when you look under the hood, there is much more to like.

    The most meaningful number I see is the 15% increased in processed transaction fee that MA experienced. (it was actually better than the 8% that was reported for V)

    Many people are confused and worried about competition from Apple Pay, Google Wallet, Paypal, Samsung Wallet, Starbucks mobile payment etc. What many do not realize is that all of the payment systems have to rely to some degree on the rails provided by the card processors. V and MA have enormous power. As these new options proliferate, so will the card companies. I especially liked it when the CEO of MA on his earnings call said "rather than placing bets, we're being relatively agnostic in all these spaces...keep yourself open, play with all of them"
    Jul 30, 2015. 08:09 PM | 2 Likes Like |Link to Comment
  • Why Amazon Is Growing Faster Than The Wal-Mart Online Business [View article]
    To find out why AMNZ is doing better than WMT, one only needs to look at their respective websites. AMNZ provides a much better shopping experience.
    If WMT ever gets its act together and concentrates its efforts on the e-commerce side, than it has a good chance to excel. However, WMT is like an aircraft carrier. It takes time to change direction. It also lacks a charismatic/unquestioned leader with the authority to make quick decisions.
    Contrast that with AMNZ. If Bezos has an idea, no matter how dumb or brilliant, it happens.
    Jul 30, 2015. 06:21 PM | 2 Likes Like |Link to Comment
  • PayPal: A Teenager's Perspective [View article]
    Michael,

    Its always nice to hear someone from the "young" crowd.
    Jul 29, 2015. 12:46 PM | Likes Like |Link to Comment
  • What Percent Of Your Return Is From Dividends? [View article]
    The contribution to total return from dividends tend to get magnified over a long period of time, particularly when there are nasty bear markets.
    Jul 28, 2015. 11:40 AM | Likes Like |Link to Comment
  • Retired Dividend Growth Investors Are Lulled Into A False Sense Of Security [View article]
    George,

    I agree with you that for many investors, seeing their portfolio drop by 20, 30 or 50% is very painful and unbearable.
    But if you've reached the The Golden Finish Line, why even worry about those losses when they are buying opportuniteis. The Golden Finish Line is the point where your dividends are enough to meet your expenses.
    In the stock universe, there are thousands of companies. But among them, there are a few that can withstand the test of time. If your portfolio is diversified among those companies, I would sleep soundly at night.
    Jul 27, 2015. 01:21 PM | 6 Likes Like |Link to Comment
  • China path for MasterCard and Visa could be bumpy [View news story]
    it appears to me that the strategy of China has been to "protect" UnionPay until got big enough to make it on its own. Now that its there, it is now allowing V and MA to compete.
    Jul 27, 2015. 12:02 PM | 1 Like Like |Link to Comment
  • Starbucks: Building Its Own Payment Ecosystem [View article]
    Stocks for long run,

    Agreed. Im comfortable investing in both value and growth stocks. With growth stocks with a long run way, it may never correct to "value" levels until its gone up a ton. By that time, there could be a correction, but minor compared to its run up.
    Jul 27, 2015. 11:22 AM | Likes Like |Link to Comment
  • Starbucks: Building Its Own Payment Ecosystem [View article]
    Compunded annual return from 2001 market peak to 2015
    SBUX 18%
    SandP500 5.5%

    Compounded annual return from 2006 market peak to 2015
    SBUX 14%
    SandP500 5%
    Jul 26, 2015. 02:22 PM | 3 Likes Like |Link to Comment
  • Starbucks: Building Its Own Payment Ecosystem [View article]
    How does Starbucks Mobile payment system work?
    Does it not require adding a credit/debit card or even Paypal?
    If that is the case the winners seem to be both Starbucks and the payment processors.
    Jul 26, 2015. 12:05 PM | 1 Like Like |Link to Comment
  • MasterCard Just Keeps Charging Up [View article]
    MA's intrinsic value is higher than its market price.
    Jul 26, 2015. 12:49 AM | Likes Like |Link to Comment
  • MasterCard Just Keeps Charging Up [View article]
    Hi Mykie,

    I try to imagine what the company will be like in the next 10-15 years. Some things to consider
    1) we are becoming a cashless society. The world is becoming a cashless society and the addressable market for the payment processors is immense.
    2) PE ratio is important, but must take into account how fast the company is growing, and equally important , the addressable market. (its Price/free cash flow is actually close to 25). A high PE for a company whose addressable market is limited is not good
    3) I used to question the moat of V/MA a bit in the past but I think their moat is wide enough to maintain their dominance over the next decade or so.
    4) without getting too technical, I believe the intrinsic value of MA is actually lower than the current price
    Jul 25, 2015. 11:21 PM | 1 Like Like |Link to Comment
  • Does Bitcoin Threaten The Future Of MasterCard And Visa? [View article]
    Dont we have virtual currency right now? I hardly ever cash right now. When i check my bank account or brokerage account, i see a certain dollar value. In many ways, the dollar is already abstract money. When I buy something at the market, i use use a debit card. Cyberdollar money is sent electronically from my bank account to the merchant's account even without me touching it. When i transfer money from one brokerage to an online bank, abstract money is sent electronically even without me touching it.
    Jul 25, 2015. 10:12 PM | Likes Like |Link to Comment
  • And The Award For World's Best Performing Stock Between 1968-2014 Goes To... [View article]
    "who comes second"

    I would say either JNJ, ABT/ABBV or DIS (perhaps 14-16% /year) . Dividends reinvested of course.
    Jul 24, 2015. 05:27 PM | Likes Like |Link to Comment
  • And The Award For World's Best Performing Stock Between 1968-2014 Goes To... [View article]
    Buffett Apprentice,

    The CAGR is much higher than 10.8%/year. Likely closer to 20%.( with reinvestment of dividends) since the early 1900's.
    It is hard to calculate for sure because of its divestitures over the years.
    Jul 24, 2015. 02:16 PM | 3 Likes Like |Link to Comment
  • Should You Be Buying American Express Right Now? [View article]
    Here is a little tidbit about AXP.
    I could not use my Visa card recently. Bank of America told me the card was on its way. Even though I have an American Express card, I was "nervous" because there are many places that do not accept it in the US.
    Now when you are talking about the international scene, its even worse for AXP. The network effect is an incredibly important factor in the credit card industry.
    Jul 24, 2015. 01:46 PM | Likes Like |Link to Comment
COMMENTS STATS
2,383 Comments
5,352 Likes