MGI has reported earnings yesterday and the company rose guidance for full year results:
«Shares of MoneyGram International (MGI:NYSE - commentary - research - Cramer's Take) were among the NYSE's winners Thursday, rising 7% after the money-transfer company posted third-quarter results that were better than Wall Street's expectations.
The company earned $29.5 million, or 34 cents a share, on revenue of $246.4 million. Analysts polled by Thomson First Call were expecting earnings of 26 cents a share on revenue of $236.9 million. MoneyGram posted net revenue -- total revenue minus total commissions -- of $126.6 million. A year earlier, the company earned $24.5 million, or 28 cents a share, on revenue of $216.2 million. Net revenue was $111.8 million a year ago.
Looking ahead, MoneyGram forecast fourth-quarter earnings of 27 cents to 30 cents a share, in line with analysts' expectation for earnings of 28 cents a share. The company now expects full-year earnings of $1.22 to $1.25 a share, up from its previous guidance of $1.11 to $1.15 a share. MoneyGram also boosted its net revenue forecast to $490 million to $500 million from $465 million to $485 million. Analysts had projected earnings of $1.16 a share. Shares were trading up $1.50 to $22.81.»
With 2005 earnings of $1.25 we get a P/E Ratio of $23.25/$1.25 = 18.6 and a growth rate of 31% in earnings per share.
Also the company is buying back its shares, which is always welcome:
«Share Repurchase
The company's Board of Directors increased its share buyback authorization
by 5 million to 7 million shares, effective August 19, 2005. The company bought
back 683,300 shares at an average price of $20.62 per share during the quarter
for a total of 2.5 million shares purchased under the authorizations. There are
approximately 4.5 million shares remaining under our authorizations.»
JP Morgan has a $26 dollar price target on MGI, but that usually means nothing.
All things balanced I think MGI is undervalued at this point, the chart shows a stock at its all time high, so no resistances ahead, so the conclusion must be that I will buy MGI for the 3 Stocks on Fire Portfolio at today's open.
Bought MGI @ $23.15 for the 3Stocks Portfolio
I know this isn't a sexy trade (sexy trade? where did this came from? maybe from the late hours, it is 3am here in Cascais, I'm at the office and my wife at home, sleeping) but it seems to be a safe trade.
I'm expecting to take out 20% here and move on. So I'll be selling at $27.78.
What an impressive run, isn't it?
I will sell MGI at $27.78 for a 20% profit without a doubt in my mind. Why sell there? You're right, perhaps I should keep it, but I don't know, not exactly on fire with this big market cap, right?
Until the stock gets to $27.78 I have time to think and see what is the opportunity cost of holding 6.66% of the 3 Stocks on Fire Portfolio in MGI.
MGI: HOLD
After 5 white marubozus in a row the fall yesterday can only be considered as "normal" profit taking. The stock continues to be extremely bullish and I have little doubts that higher prices are coming. I'll continue holding MGI.
Insiders have been buying some shares at current prices ...
No reason to sell MGI here. I'll continue holding it.
MGI is consolidating its recent gains. The trend is still bullish after a strong breakout. I want to keep this stock.
Nice white candle from MGI, although volume wasn't so great. Let's see if it can break $25 tomorrow, bull trends have no resistance. JP Morgan has a $26 price target for MGI, at present moment I think this advance phase will go beyond that level.
More volume and more upside for MGI, as expected. Just let the profits run.
MGI is approaching the JP Morgan price target of $26. I believe the stock will surpass that, but I don't want to live ahead of time. For now, at this exact moment, I can't think of anything else but hold, but I can change my opinion anyday (but not intraday).
I'm thinking of taking profits at MGI when I have a 20% profit ... that seems a bit ridiculous, why 20%? Why not 10, or 30%? Why not hold it for as long as the trend remains bullish?
I'm afraid I don't have a good answer for this question. The stock is already a mid cap so I don't expect spectacular short term returns, and the 3 Stocks on Fire Portfolio is a position trading portfolio, not a long term investment portfolio. Probably that's why I feel 20% as adequate.
But for tomorrow's session, I'll just continue holding MGI.
Another positive day for MGI, though it wasn't on volume above average. I see no reason to sell MGI now, let the profits run.
And profits are running, indeed :)
I was right when I bought this stock. Now I'm facing the sometimes more difficult part of the speculation game, which is: sit tight !
If you're right, sit tight, let the profits run.
We've had a micro pullback on MGI today, certainly nothing to be worried about. There were no news, volume was low and the close was higher than the open. This means just a pausing day before the uptrend resumes, I believe.
Selling at the open isn't a good way for the bears to take the lead on a bullish stock. I don't know why MGI had such a lower open, I guess it was because the stock is up a lot in the short term, but that's not a valid reason to sell.
Bulls took the opportunity they had and bid the stock up the entire day to close near the highs. Volume was a bit heavier, which is a positive. Letting the profits run on MGI.
Goodbye JP Morgan $26 target price :)
No news whatsoever, just people buying, buying, buying. I am fortunate I have a 13% profit already, so I'm a strong bull now.
As a strong bull I'll just sit tight.
Again, making MGI open lower isn't the best way to take control from the bulls of this stock. As always, it came back near the end of the session.
It still closed just a fraction lower on the day, not a problem for me. I'll continue holding MGI, JP Morgan price target is behind us and I can only see higher prices for MGI.
MGI upward pace has slowed somewhat. I considered if I should take profits here, but I went back to the beginning of this thread, saw my justification for buying, and I still think the stock is undervalued. Shares have more room to apreciate and the trend is still bullish.
I'll try to take profits at $27.78, for a 20% profit, not here at $26. The downside is pretty limited and probably until the end of 2005 MGI will reach that $27.78 level.
We'll see, I'll continue holding MGI.
The stock sold off with the general market on profit taking. There were two press releases yesterday:
MoneyGram International Signs Multi-Year PrimeLink Official Check Contract With United Bank (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=1762933&guid=%7BB96044F2%2D1D9A%2D457A%2DB7D7%2D87AA37657089%7D&symb=)
MoneyGram Previews Prepaid Card At NACS; Company Steps Up Roll-out Schedule To Select Markets (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=1762933&guid=%7BA80F90AC%2DFAF9%2D4FB1%2D8E9C%2D0997202DA4D7%7D&symb=)
What I see here is a reaction in a bull trend that has not changed. I'm expecting new highs before the end of the year, so I don't want to lose my position.
Trading Plan for MGI: Take profits at $27.78, or SELL IF the stock is set to close below the 50% Fibonacci retracement level of the recent bullish move, which stands at $24.15.
It looks like today is the dividend day, look at the news that came out of MGI:
MoneyGram International Increases Quarterly Dividend (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=1762933&guid=%7B5164F900%2DE6B5%2D46BC%2D957E%2DC9E2A99E716B%7D&symb=)
I'll keep the trading plan: Take profits at $27.78, or SELL IF the stock is set to close below $24.15.
Very few people are reading the updates on these higher than $20 stocks, so I won't waste much time writing about them:
The trading plan is take profits at $27.78, or SELL IF the stock is set to close below $24.15.
Nice move yesterday from MGI, when least expected a 2.72% rise.
I'll keep the old but actual trading plan:
QuoteThe trading plan is take profits at $27.78, or SELL IF the stock is set to close below $24.15.
MGI suffered a bit of profit taking today, but nothing special, certainly nothing that can damage the short term bullish outlook I have for this stock.
I'll just keep the plan:
QuoteThe trading plan is take profits at $27.78, or SELL IF the stock is set to close below $24.15.
I got a bit worried about the short term outlook for MGI. The stock made what can be called a false breakout of the $26.30 resistance level. And all these SEC filings increasing directors and other employees compensations, I don't like it. I suspect that in the future I'll have to sell the stock below $24.15 if I do nothing.
So I'll sell it at today's open, that I expect to be near $26.
So do i smell a short now? "BUY LOW SELL HIGH, AND SELL HIGH BUY LOW"
RIYADH, Saudi Arabia, Jun 30, 2009 (BUSINESS WIRE) -- MoneyGram International (MGI, Trade), a leading global money transfer company, and National Commercial Bank (NCB), the largest bank in the Middle East, announced today an agreement to offer MoneyGram's international money transfer service at NCB's 1,400 ATM locations, creating one of the largest money transfer networks in Saudi Arabia.
The agreement, which significantly expands MoneyGram's presence in this important country, provides consumers in Saudi Arabia with more convenience and greater access to money transfer services through a network more than 10 times larger than any other money transfer network currently available in Saudi Arabia.
A global remittance leader and home to more than 6 million expatriates, Saudi Arabia saw remittances grow to more than $17 billion in 2006, according to the World Bank. In addition to the fact that 27 percent of Saudi Arabia's population is foreign born, the demand for money transfer services is also driven by the growing number of Saudis studying, traveling and working abroad.
"Saudi Arabia is the second largest send market in the world behind the United States, and our alliance with a premier financial institution like National Commercial Bank represents a significant opportunity for MoneyGram's expansion plans in the Middle East," said Anthony Ryan, president and CEO of MoneyGram International.
Ryan, along with MoneyGram executives John Hempsey, head of MoneyGram International, Limited, Herve Chomel, vice president of International Markets, and Richard Meredith, head of MoneyGram's Dubai office, met today with NCB leaders to announce the expansion and launch the new service throughout the country's major cities of Riyadh, Jeddah, Dammam and Khobar.
"Together with MoneyGram, we can now claim to offer our customers simply the best way to send their money to loved ones back home, using the largest money transfer network in Saudi Arabia," said Alasharif Khalid Alghalib, senior executive vice president and head of the Individual Banking Sector of NCB. "With our partner, we have removed the inconvenience of standing in line during office hours and are providing expatriate clients a service that is secure and quick; but above all, flexible and tailored to meet their needs."
MoneyGram's Hempsey said: "We are fortunate to work with the Kingdom's leading bank in this dynamic and mutually beneficial venture. The ultimate winners in this scenario are the consumers, who will benefit from the convenience of having money transfer services available at 1,400 ATMs located where they shop or visit."
Meredith, regional director for the Middle East and head of MoneyGram's Dubai office, said, "We'll be working closely with NCB at their registration centers and mobile registration events to rapidly register expatriates across Saudi Arabia. As expatriates learn of the convenience of the ATM-based money transfer service, we'll provide MoneyGram's 10-minute delivery to the global network of 180,000 agent locations in 190 countries and territories."
MoneyGram money transfers at NCB will be sent over NCB's Quickpay platform. Initially, only send services will be available.
MoneyGram has been operating in Saudi Arabia since 1998 and manages its services to the region from an office in Dubai. The company began offering ATM-based money transfer service last year. MoneyGram ATM money transfer services are available in the U.S. at 7-Eleven locations, in Poland at BillBird's My Money Transfer locations, and now through NCB in Saudi Arabia.
About MoneyGram International
MoneyGram International offers more control and more choices for people separated from friends and family by distance or those with limited banking relationships to meet their financial needs. A leading global provider of money transfer services, MoneyGram International helps consumers to safely send money around the world in as little as 10 minutes. Its global network is comprised of 180,000 agent locations in 190 countries and territories. MoneyGram's convenient and reliable network includes retailers, international post offices and financial institutions. To learn more about money transfer at an agent location, please visit www.moneygram.com.
About The National Commercial Bank
The National Commercial Bank is the most prominent of Saudi banks and was the first bank established in Saudi Arabia. The Bank initiated business in the name of "The National Commercial Bank" under Royal Decree on 20 Rabi Thani 1373H (26 December 1953). The initial paid-up capital for NCB was SR 30 million (US$ 8 million). Since its establishment, the bank has maintained its legal structure as General Partnership until it was converted into a Saudi Joint Stock Company in 1997, as a first step towards an initial public offering (IPO). In 1999, the Government, through the Ministry of Finance's Public Investment Fund (PIF), acquired a majority holding in the bank.
SOURCE: MoneyGram International
MoneyGram International
Lynda Michielutti, 952-591-3846
[email protected] Copyright Business Wire 2009
Been some time without any posting on this one...
MGI was an add to the Russell 3000
MoneyGram signs deal with Saudi bank
MoneyGram signs money transfer deal with Saudi Arabia's National Commercial Bank
52wk Range: 0.80 - 2.26
Volume: 4,459,819
Avg Vol (3m): 484,228
Market Cap: 193.93M
P/E (ttm): 335.71
EPS (ttm): 0.007
Div & Yield: N/A (N/A)
Technicals
Last Price Quote is:
44.56%above 13-day EMA
53.56%above 50-day EMA
RS Rating: 92
Fundamentals
Key Data:
Market Cap (M): $146.90
P/E Ratio: 189.56
PEG Ratio: N/A
Next Earnings: 08/06/2009
Last Analyst Rating: Mkt Perform