Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

MasterCard (NYSE: MA)

CryptocurrencyLong Ideas

MasterCard sees Value in the Blockchain

U.S. Patent Application 20170323294  for “a method for processing a guaranteed electronic transaction” specifically mentions the blockhain. Here is how it is described in the application:

“The present disclosure relates to the use of recorded guarantees for payment transactions for verification by acquiring institutions to facilitate instantaneous payment to a merchant involved in the payment transaction, specifically the use of a blockchain or other third party network for verification of a guarantee associated with the payment transaction.”

The applicant for the application; dated May 6, 2016, was MasterCard International Incorporated of Purchase, New York. Get the picture folks MasterCard is trying to create a blockchain-based solution for instantaneous payment.

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Crazy Stocks

Wells Fargo and the Future of Monster Banking

The potential challenges Wells Fargo faces are vast. The greatest of these is falling revenues, which probably reflects the growing implosion of the mortgage market.

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Cryptocurrency

MasterCard CEO: “Non-government mandated currency is junk”

Notice Banga said government-mandated, which means he might accept a private cryptocurrency that has a government’s seal of approval. This means MasterCard might be open to working with China’s NEO or Russia’s Waves; both of which seem to have indirect government backing. Crypto users should beware because Banga might also be aware of plans for some sort of crackdown.

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Market Commentary

Is MasterCard Unstoppable?

Nor was it just cash that was growing at MasterCard. The number of Americans that used a MasterCard grew by 550,000 between Fall 2015 and Spring 2016, Statista data indicates. Around 92.16 million people in the United States swiped a MasterCard in Fall 2015. That number grew to 92.71 million a few months later in Spring 2016.

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Good Stocks

MasterCard Investors are Profiting from Credit Cards

To add icing to the cake this is the second stock buyback program, MasterCard has launched in a year. Last year MasterCard started another $4 billion buyback program, but only $2.7 billion that money has been spent.

That means MasterCard is scheduled to buy back $5.3 billion worth of stock in the months ahead. That should have quite an impact because MasterCard had a market capitalization of $114.56 billion on December 7, 2016.

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Long Ideas

PayPal Keeps Growing and Growing and Growing

That makes PayPal a growth stock that generates a lot of cash. My guess is that it will pay a nice dividend day, but until then it will generate a lot of cash and grow systematically. PayPal is on track to becoming a payment industry giant that might outstrip such historic rivals as American Express (NYSE: AXP) at some point.

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Opportunities

Apple Pay Now in Russia

It looks as if expanding Apple Pay’s reach is easier than getting people to actually use it or retailers to accept it.

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Long Ideas

Is Western Union Doomed or an Income Value?

Western Union is making a lot of money and generating a lot of float for its size. It’s also easy to see why its stock value is going up. Ycharts reported that investors were rewarded with a dividend yield of 3.13% and a return on equity of 63.2% on September 16, 2016.

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Good Stocks

Is Discover the Value Investment in Credit Cards?

My take is that both Visa and MasterCard are overpriced; and headed for a fall, but Discover is not. Visa in particular is on shaky ground because its booming revenue is not translating into net income.

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