Friday, February 9, 2007

Mastercard (MA) and Few Other Notes

It traded as low as $99.63 and that brought some analysts out of the woodwork including Prudential which says the weakness creates an entry point. It reiterated an Overweight.

Many of the subprimes found a bottoming point about an hour ago, but are still sharply lower. I took today's weakness as an opportunity to pare my NFI March put holdings and now hold only house money positions.

I'm going to keep the long gold futures position open. $671 sure is looking good.

I've written recently about GOOG... my mind has not changed. I still think it is headed for $450 at least and I've put my money where my mouth is.

2 comments:

Deborah said...

I got to your blog through trading goddess. How do you know how much traffic your blog is getting?

How do they get overweight for Mastercard? Earning of 30c per share at $100 a share. That just seems utterly nuts to me.

I think Google will head even lower. It might take until after Q1/07 earnings. They've been singing in the glory of the 45% increase in earnings between Q4/05 and Q1/06 for the the last 3 earnings reports. I think this past earnings increase was decent, but increases for Q2/06 and Q3/06 were pathetic for the valuation that investors have given Google.

My current favorite is Roca. Roca's (ROK on tsx venture) probably going to manage earnings in the range of 10c/share for Q3/07 and it is trading at $1.37 right now. Mastercard, earnings of 30c on a hundred dollars, nuts...

Unknown said...

Hi Denorah... yes, those analysts are a bunch of rascals, but it did seem to help bounce the stock a bit off the 99 level mid afternoon. It's amazing the stock has run as much as it has. It's hard to figure out the insane ways of Wall Street which is why I generally trade futures, but the volatility is starting to creep back, or signs of it, into the stock market, which is bringing me back in for some fun and games.

GOOG... with expiration coming up it will find itself pinned by week's end either at 450 if it sinks further early week, or up at 470 if it can bounce midweek.. or maybe right at the present 460... how's that for vague! I just don't see any great upside catalysts and more downside bias in the next few trading days before pinnage takes hold late week.

I will check out Roca out. Thanks for reading!