Discussion in 'Stocks' started by newtothis, Sep 25, 2008.
Why is mastercard going down while the dow holding up pretty well
There can be expectations that credit card debt will become the next big financial time-bomb to explode if the overall economy worsens.
MA is not subject to credit card default.
As was mentioned, MA does not carry debt, but they were downgraded recently by S&P to a "Hold", which in a bear market seems to be a kiss of death :eek:
Also, MA was certain to test new lows Friday once the bailout plan fell apart Thursday, because a free-flowing credit market is crucial to its success.
MA is a fundamentally sound company with expanding overseas markets as wireless transactions become more and more global.
They'll likely range around for a while though, before moving significantly above $200 again
but the fact that ma in in debted too by its customers makes it just like any loan. except thats its usually smaller amounts than a mortgage
? they cannot lose money on any transaction. they are not guaranteeing that the customer pays
(is verifone a competitor of theirs?)
Any clue about Credit Default Swap?
Dan Zanger and several other players have been shorting MA for months. MA is the next AKAM.
MA is great for intraday longs and shorts, because it moves in such large chunks ($5-$30 moves).
zdreg ofcourse they can lose money, any customer who is piled up high in debt can walk away if they don't give a shit about their credit
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