The Insanity That Some People Refer To as MA

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ByLoSellHi

P/E Ratio 301.7x

Net Profit Margin (TTM) 1.5%

P/Sales (TTM) 4.3x

Return on Assets (TTM) 1.1%

Return on Equity (TTM) 2.8%





Annnywaaaaayyyy.........


Oh, and a...... wha'evah
 
Correct me if Im wrong.

The high ratios you see are due to the charitable donation. The
charitable donation is for the betterment of the company as an anti-takeover pill.

However, when comparing it to American Express, Mastercard is indeed over-valued, but not bubble levels. The street is betting on continued growth. However, there is still the lawsuit issue. The street had focused on this issue strongly last year and thats what kept it in the 40s. This year its become a non-issue, however, the lawsuit issue is still there.

There is also the factor that MA had turned in some flat quarters in its private years.

MA is priced at a premium. It must continue its growth. If either growth or the lawsuit issue comes to bare, then MA will fall very quickly. It fell 20% in one day on the last earnings call.

Watch the earnings calls, watch the lawsuit issue. This will make a great daytrade short when the bad news comes out.

Even better, Cramer is pimping the stock. This should make any fall even larger. It will happen in a day though so you have to get in on the short as the news comes out.
 
Quote from aeliodon:

I never really followed the stock but there's got to be more to it than that. A 301 PE is just insane. Is there something missing here?

Edit: on yahoo finance it shows forward PE as 22 and and rev. growth at 17%.
http://finance.yahoo.com/q/ks?s=MA
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Trailing P/E of 293 on Yahoo.

Don't we all just love forward P/Es?

I hereby decree that Vonage will grow its revenues 120% per year through 2020
 
MA (mastercard) is leading the way for paymentism. Pyamentism is the methods The Creators use to extract money from the fading middle class through fees and interest. MA is an evil coperation; its far far worse than Exxon or Wallmart. There is a place reserved in hell (even though The Creators don't believe in it) for everyone who works there.

But I am still long and I bought in the low 80'S and I intent to sit back and make easy money with this.
 
Quote from stock_trad3r:

MA (mastercard) is leading the way for paymentism. Pyamentism is the methods The Creators use to extract money from the fading middle class through fees and interest. MA is an evil coperation; its far far worse than Exxon or Wallmart. There is a place reserved in hell (even though The Creators don't believe in it) for everyone who works there.

But I am still long and I bought in the low 80'S and I intent to sit back and make easy money with this.
More...

haha +1

MA will get much competition very quickly, though.

That will be its undoing.

There is a wave of merchant rebellion brewing that will put pressure on transactional fees. If stores can't convert larger numbers of their own shoppers to their in-house cards, they will seek out other solutions.

MA has an unsustainable business model: its fees are too high, not from the consumer side, but from the merchant side, for their not to be a lower cost successor in the wings.
 
Quote from stock_trad3r:

MA (mastercard) is leading the way for paymentism. Pyamentism is the methods The Creators use to extract money from the fading middle class through fees and interest. MA is an evil coperation; its far far worse than Exxon or Wallmart. There is a place reserved in hell (even though The Creators don't believe in it) for everyone who works there.

But I am still long and I bought in the low 80'S and I intent to sit back and make easy money with this.
More...

Geez, you're so pensive these days. Where's your good old don't-ask-permabull self? :D
 
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