Wait until the AMEX lawsuit. Go to their website and read up on it. The Discovery process is coming soon. Once that rears its ugly head then I bet you it will make the "do not trade" list.
Remember the rimm lawsuit last year? Pfft all hot air since it is at all time high. Nothing to worry about.
Noooooo. The RIMM lawsuit was about some guy who had patented the idea of electronic email. It was a huge fluke all along and nothing but hot air. Those folks just wanted some cash and the only argument was how much. The lawsuits that I speak of reach much deeper then some guy wanting a few hundred million. http://www.mastercard.com/us/company/en/newsroom/litigation.html We are talking about their biggest competitor and the damages could reach into the billions. Your line of thinking isnt bad, but its like the investors who thought that Delta Airlines would be similiar to American Airlines. At a forward P/E of 27+, Mastercard is fully valued. You also have to remember that when they were private, they did have a few quarters with flat to no growth. Any trip up at this point will send Mastercard down uncontrollably.
Then why is it still going up if it is doomed? I can guarantee you nothing will materialize that will affect the stock price much.
yes, i covered at 487.xx yesterday. Wiith the market the way it is, i have moved to an intraday strategy until the market decides what it wants to do.
SO. 1. Rates dont go up or down 2. the market hasnt gone up with the last 17 rate hikes in the past 4 years?????? 3. FUTURE MAN!!!!
Right now is a very bullish time of the year. Stocks are being bid up irrationally for quite a few reasons. Some of the stocks are trading way beyond their fundamentals. Everyone is discounting future problems like recession and economic downturn. Mastercard had settled one of the minor lawsuits against them. http://www.mastercard.com/us/company/en/newsroom/resolved_litigation.html This gave investors confidence. As you said, the RIMM lawsuit was settled so investors figure why cant Mastercard do so as well? The RIMM lawsuit was different in nature and fact then the AMEX/Discovery lawsuits. In the RIMM lawsuit, it was the estate of a man who had patented the idea of electronic mail. They just wanted cash. However, AMEX/Discovery are major competitors with Mastercard with nothing to lose and everything to gain. They are not going to settle for a few hundred million. http://money.cnn.com/2006/06/16/news/companies/mastercard_litigation/index.htm The street is also betting that the stock will go down. Short interest has only increased, not decreased. http://www.nasdaq.com/asp/quotes_fu...pe=&mkttype=&pathname=&page=short&selected=MA The nature of lawsuits is secretive until they come to an open courtroom. One of the initial steps towards litigation is discovery. Once the discovery process is set in motion, then the cat will be let out of the bag. Traders and investors have tunnel vision and usually only see the cash. They dont see such problems like recession and lawsuits around the corner. They make excuses pointing to unrelated issues like RIMM. Right now Mastercard is the king, just like Hansens was last year. Next year will be different. Look at how Mastercard dropped quick today on a simple durable goods report. You know there are plenty more reports this week that could either be good or bad. Imagine a complex legal process or recession. Mastercard will come back down. Last year, stocks were bid up right until May and then they came down hard. Next year will only be a variation of 2006. There will be a point in which there will be a house of pain. Then another rebound.
Thank you for your great analysis Eagle488. Do you know when the discovery process starts or ends in the Amex lawsuit ?