MA

[nullzero]

"MasterCard Incorporated, along with its subsidiaries, operates as a payment solutions company. The company develops and markets payment solutions, processes payment transactions, and provides consulting services to customers and merchants. It provides transaction processing and other payment-related services, as well as facilitates the authorization, clearing, and settlement process of the transactions. The company also provides various programs, such as consumer credit and debit programs, commercial payment solutions, stored value programs, and prepaid programs, as well as offers commercial payment solutions, contactless payment solutions, and consulting and research services. It manages and licenses payment card brands, including MasterCard, MasterCard Electronic, Maestro, and Cirrus. As of December 31, 2006, MasterCard Incorporated served approximately 25,000 financial institutions worldwide. The company was founded in 1966 and is headquartered in Purchase, New York."

Market Cap (intraday): 14.22B
Enterprise Value (18-Mar-07)3: 11.97B
Trailing P/E (ttm, intraday): 284.51
Forward P/E (fye 31-Dec-08) 1: 21.48
PEG Ratio (5 yr expected): 1.50
Price/Sales (ttm): 4.27
Price/Book (mrq): 6.01
Average Volume (3 month): 3,254,880
Average Volume (10 day): 3,546,080
Shares Outstanding: 135.08M
Float: 121.75M
Shares Short: 8,337,263  
Days to Cover (Short Ratio): 3.5
Shares Short - Prior: 7,403,841  
Short % Increase / Decrease: 12.61 %


MA looks like a great short at these levels.

Here is some reasons a short looks attractive at these levels;

*MA is extremely overbought in the medium term

*Valuation is on the high side compared to peers

*Business is highly dependent on good consumer spending and no liquidity problems to prosper. The consumer spending trends look like they are now trending to the downside and GDP growth is slowing down which wont be good for MA.

*MA is facing techincal resistance at the 50dma and also stuck in a tight trading range

*Strong resistance overhead resitance between 108-111.

[tokyopua]

Im short MA too Nullz, got the idea from Fast Money, it does indeed look like it should weaken from here despite its recent little rally.

[pompano]

Not too mention that ugly, ugly, sell off in Februrary.     Applaud the pick Null.

[tokyopua]

Yep, this stock has more than doubled since its IPO and has a huge gap to fill.  It was a good stock to short even before the market started moving down, and that is what we need right now in short candidates since a general market bounce is still possible.

[buffaholic]

Have you guys covered yet? I ended up covering this morning. Good luck.

[tokyopua]

Have you guys covered yet? I ended up covering this morning. Good luck.

I didnt cover yet, the moves up are on low volume compared to the big move down, and the midpoint of the long red candlestick down on 2/9 was around 109/110, so that should act as upward closing resistance. 

If the market looks to take off here after the fed minutes I might cover though.  Otherwise, with a neutral market, it will probably take a close over 110 to get me to cover.
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Decided to cover on this big move in the market...

[BigSully1]

Someones rackin up those CC bills!

[BigSully1]

8:14AM MasterCard beats by $0.59, beats on revs (MA) 242.50 : Reports Q1 (Mar) earnings of $2.59 per share, excluding non-recurring items, $0.59 better than the First Call consensus of $2.00; revenues rose 29.2% year/year to $1.18 bln vs the $1.07 bln consensus. Worldwide purchase volume during the quarter rose 15.0%, on a local currency basis, versus the first quarter of 2007, to $453 billion, driven by increased cardholder spending on a growing number of MasterCard cards. As of March 31, 2008, the company's financial-institution customers had issued 935 million MasterCard cards, an increase of 12.1% over the cards issued at March 31, 2007.

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[setravis]

"MA" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.         
All history on a stock pick in 1 thread is awesome.       

Thank You....and good luck with all your trades....make some $$$ 


I will leave you the chart while I am in this thread.....
Below is the 1 year chart...