I write plenty on the topic of mergers and acquisitions. While I tend to cover them as news stories, it’s also important to evaluate why mergers and acquisition activity is good for the stock market.
This stock was the perfect bubble. Mastercard represents strong growth in foreign markets, an excitingly strong PEG ratio but is currently running the wrong business. Tight credit markets lower the amount of available credit and the amount that Mastercard users can afford to charge. Read more…
Mastercard is apparently tied to the price of oil, or so you might think. The stock enjoyed its heyday run from $140 a share to $320 in just a matter of 10 months, but it seems now that the stock is a falling star. You could make the case that Mastercard is a bubble, sure its got fundamentals to back but the analysts following the stock are all too optimistic. Tightening credit in the US is something that will slow down its profit margins, the less people can spend the less Mastercard ultimately earns. Read more…
