People use credit cards during vacation to make reservations,pay for meals,pay Hotel bills ETC,this will bode well for MA and all the other credit cards..Good luck everyone.
Like i said I don't think your way off just alittle too excited about making so much money....think about what you said...people will put small items on the card cause they have too but itll take 20 gas purchases just to offset that one LCD TV someone doesn't buy because the economy is sucking wind!
I am not even convinced a slowdown will be lasting, the consumer is still spending.
You're a fucking a$$hole, and we all know it. You've been wrong about MA from day one so why don't you just leave this board forever you dumb dickhead.
You've never added any value what-so-ever with your stupid posts, ya, your stupid posts.
I tell you fellas,
Every transaction i made is on my MASTER CARD. (which is payed of at the end of month with cash from checking/saving/whichever)
GAS, GUM+CHIPS+soda at the gas station, food, burger, house payment, car payment, newspaper, food shoping, etc... (bottom line -from $2 - 10000$ purchases go on my card)
Daily i make 10-50 buys with my MA. And I am not the only one.
That is another reason I invest in MA.
Ben... Thanks for your response and you make several good points. I don't think MA will be totally insulated from a consumer slowdown but in my opinion the impact shouldn't be too severe. I look at those around me and when their short on cash between paychecks they are forced to use plastic for everyday purchases, not just big-ticket items like your example (flat screen TV's). They are using credit cards for gas, going to the movies, lunches/dinners, Father's day cards, milk/bread, small purchases, etc... MA doesn't care about the size of the purchase, they just care and profit from the transaction. I believe when times do get touch/slow, MA will continue to benefit from the increases in cc transactions.
I may be way-off, just my opinion.
if you look at the 2008 earning estimates.
That means that mastercard trades at P/E of 25
5.66 divided by 144 = 25 P/E
with a 25% growth rate year over year we can pay up to 50 times earnings
5.66 2008 times 50P/E = $283
5.66 2008 times 40P/E = $226
Either way it only makes sense to buy this bad boy NOW NOW NOW