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ORIX Corporation Message Board

  • petecoves petecoves Dec 11, 2007 10:13 PM Flag

    The facts on the Teflon Credit Card Co. Mastercard (MA)

    Here are the facts Facts

    RSI 82 in extreme overbought condition
    Price to Sales ratio 7
    Price to cashflow 33
    PE 33
    Peg Ratio 2.07
    Huge Insider Selling. - Remember the Home builders @ mortgage related insiders?
    Insider Purchases - Last 6 Months
    Shares Trans
    Purchases N/A 0
    Sales 133,969 13
    Net Shares Purchased

    (133,969) 13

    Goldman Sachs Selling

    EU commission ruling on Interchange fees before the end of the year.

    Bankers have grumbled about the plan, calling for more time before they could drop extra cross-border fees, claiming this could hike overall payment prices in key markets such as Germany.

    Kroes suggested that national card payment schemes should be encouraged to join the SEPA scheme because that would introduce and increase competition to the benefit of merchants and customers.

    The EU competition commissioner said she was working hard to wrap up an ongoing antitrust case against MasterCard Inc. The European Commission last year charged the credit card provider with illegal price fixing for setting the fees retailers must pay for accepting MasterCard and Maestro branded cards, saying this limits competition between banks who use the xservice.

    "We want this decision to provide the industry with a solid competition analysis of the MIF as applied by MasterCard," she said.

    Kroes earlier signaled that Visa may also face further trouble ahead. In 2002 it won a temporary exemption from EU antitrust rules that allowed it to strike deals on interchange fees with banks that it might usually compete with.

    This exemption expires at the end of the year and Kroes said in October that she was unlikely to simply extend it, warning that she had "the feeling that something should be done."

    Regulators have criticized the high level of these fees, saying card networks like Visa, MasterCard and American Express have failed to explain why they need to charge so much for handling payments.

    American Express lawsuit they have yet to settle - MasterCard could be liable for 3 Billion if they proceed to court,
    Date set Sept,9th 2008

    Foreign Currency risk - right from the 10Q of MasterCard:

    EURO in downtrend -FXE falling

    Impact of Foreign Currency Rates

    Our operations are impacted by changes in foreign currency exchange rates. In most regions, except Europe, assessments are calculated based on local currency volume converted to U.S. dollar volume using average exchange rates for the related assessment period. In Europe, the non-euro volumes are converted to the euro. As a result, assessment revenues are impacted by the overall strengthening or weakening of the U.S. dollar or euro compared to the foreign currencies of the related local volumes in each period. In the three and nine months ended September 30, 2007, the U.S. dollar weakened as evidenced by a 16.6% and 17.4%, respectively, increase in gross dollar volume ("GDV") on a U.S. dollar converted basis exceeding local currency GDV growth of 12.8% and 14.1%, respectively, compared to the same periods in the prior year.

    We are especially impacted by the movements of the euro relative to the U.S. dollar since the functional currency of MasterCard Europe, our principal European operating subsidiary, is the euro. The strengthening or devaluation of the U.S. dollar against the euro impacts the translation of MasterCard Europe's operating results into U.S. dollar amounts

    Small rate cut is not good for any credit card related company, even if you don't take on the debt.
    Do you think most Credit Card Issuer's will be reluctant to take on any more consumer debt?

70.41+0.12(+0.17%)Oct 21 4:02 PMEDT