| Stock (Symbol) | Stock Price | |
MasterCard (MA) |
$449 |
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| Data is as of | Expected to Report | Sector |
Sept 26, 2012 |
Oct 30 |
Financial |
| Sharek’s Take | ||
 This report for MasterCard is not what I’m used to seeing. Annual Profit Estimates just declined for the first time since 2010 Q3 due to weakness in Europe (Spain & Greece are causing issues, and the problem is spreading). Also, profit growth failed to crack 20% this quarter. At this point, I feel MA is fairly valued and will sell the stock from the Aggressive Growth Portfolio today.On the bright side this company is in the midst of a multi-year run in which it will grow profits 20% a year. This is a great stock to buy-and-hold, and will remain a core holding in the Growth Portfolio. Here in the U.S. we are used to using credit cards for everything, this trend is just getting going in some countries around the world. |
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| One-Year Chart | ||
 This stock has gone from $300 to $450 during the last 52-weeks. That’s a 50% jump but profits haven’t grown 50%. MA’s P/E is now 21 and the estimated Long Term Growth Rate is 19%. With the numbers in the Earnings Table not-looking-dapper, I think this stock is where it should be. |
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| Earnings Table | ||
 Revenue growth was only 9% LastQtr compared to 17% 2QtrsAgo — that’s deceleration. Profit growth was 19% down from 25% 2QtrsAgo.MA only beat by a penny — meh. As I mentioned earlier, Annual Profit Estimates declined across the board. Just a little, but still down. Quarterly estimates also declined. Profit growth is expected to average 14% the next four quarters. Keep in mind MA didn’t beat or up estimates so 15% or so growth could be coming. |
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| Fair Value | ||
 I’m punishing MA for this weak report, taking the Fair Value P/E from 23 down to 21. This stock has little upside. |
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| Ten-Year Chart | ||
 MasterCard was around $225 two years ago, now it’s just shy of $450, so its doubled. But the profits have grown from $14.05 to an estimated $21.83. That’s not a double. The P/E’s gone from a “tasty” 16 to an “I’ve had enough, I’m full” 21. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
12 of 16 |
I’m turning my nose up to MasterCard this quarter.I like the stock for the long-term but feel this is as good-as-it-gets this year. This is so-so quarter is not what we are used to seeing from MasterCard. I feel we can do better. Although MA is trending higher I’m lowering its ranking in the Growth Portfolio Power Rankings from 6th to 12th out of 16 stocks. MA will be sold from the Aggressive Growth Portfolio today. |
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Aggressive Growth Portfolio
N/A |
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