Tuesday, March 29, 2011

Stock Idea: MasterCard Inc. (MA, $251.71)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

MasterCard Incorporated (MA)
serves 22,000 financial institutions globally. Read about a future joint venture aimed at a mobile payment feature for Android users, featured today in the Wall Street Journal.

MA has projected consensus EPS growth of 18.7%, 17.3% and 16.7% for fiscal years 2011-2013. The PE is 15.1, the beta is 1.1 and MA pays a small dividend.

MA was trading between $220 and $305 prior to the financial meltdown of 2008. After falling and recovering, the stock has traded between $195 and $270 since August of 2010, with the more recent, tighter trading range being between $240 and $255. I would more likely buy now than attempt to buy lower. Look for the stock to break out of this trading range on the upside in the near future.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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