Master Stock is Priceless

Once upon a time, I asked: Is Mastercard Priceless

Longer term trend investors can establish a position now at the 50-d moving average or at least start to initiate a position by accumulating shares. Look for a confirmation on a move to the up-side above the trading range I have highlighted in blue on the weekly chart.

Bottom Line: MA is rated a buy in my book and I am grabbing shares today.
*This blog post is not a recommendation to buy this or any other stock. Please do your own due diligence and buy and sell at your own risk!

One month later, Mastercard was already Paying Off

First quarter earnings rose 70% boosted by higher gross dollar volume and a 19% jump in the number of transactions processed. The Purchase, N.Y., issuer of credit and debit cards and provider of a transaction authorization network reported first-quarter earnings of $214.9 million, or $1.57 a share, up from $126.7 million, or 94 cents a share, a year earlier. MasterCard said net revenue for the quarter rose 24% to $915.1 million from $738.5 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of $1.16 a share on revenue of $842 million.

Six months later, Mastercard was Charging Ahead

Mastercard (MA) looks like it’s heading for $200 and beyond after the recent numbers presented to Wall Street. Some analysts are cutting their ratings but what do they know. Listen to those talking heads and you will go broke. But hey, they’re experts!

How about those experts? Well, the stock is up 155% since the original blog post on 4/2/07 at $107.28 and it has never violated the 200-d m.a. on the weekly chart (weekly closing price). Mastercard has been a wonderful holding in my portfolio and I was delighted to see the earnings release today. Both MA and Visa lit up my screens when I returned home from work. Other holdings didn’t fare as well but these are the days I love (could this joy be a contrary indicator?). Visa is now above $80 per share with a 6%+ gain today on above average volume.

Take a look at some of the other posts highlighting Mastercard over the past 12 months. I featured Mastercard on the blog 17 times in 2007 and another half-dozen times already in 2008.