UPDATE: Master Card Split and EXEL
MasterCard
Incorporated (MA): I recommended in my blog last
month traded today for the first time after split. If you bought your share
please check your account and you should have got 10 stocks for every 1
stock that you hold.
EXEL: Exelixis
plans to offer 10 million shares of its common stock in an overnight
underwritten public offering (EXEL). The price will be determined
tomorrow AM. As a matter of fact, there could be some correction tomorrow.
Hence it may not be a bad idea to take some position. This has gone up about
38% from the time I wrote on my December blog.
Which
one - Master Card (MA) or Visa (V)? Both
these companies good and have their strength and weaknesses. This is a good
debate to have. However, I personally would like MA over V, based on
fundamentals and growth prospect. See the table below. The green colors are
critical factors where MA scores higher than Visa. Visa could be little cheaper
but coincidently revenue growth and profit are lagging comparatively. So if you
are a conservative/growth investor then it fits better. If you are a
conservative investor then Visa may fit better. Let's have a quick analysis of
some key fundamentals:
Fundamentals
|
Master
Card (MA)
|
Visa
(V)
|
Market Cap
|
$10.03 Billion
|
$148.35 Billion
|
PE Ratio
|
32.95
|
30.69
|
Forward PE
|
26.78
|
22.49
|
Revenue Growth
|
15.60%
|
8.9%
|
Return on Equity
|
42.45%
|
18.27%
|
Profit Growth
|
13.9%
|
-28.3%
|
Institutional
Holding
|
82%
|
57.2%
|
Dividend
|
0.50%
|
0.70%
|
International
Growth
|
MA seems to have more
international growth comparing to Visa.
|
Visa seems to
have more US presence comparing to MA.
|
Stock Split
|
After the split
it gives individual investors a better opportunity to buy. Otherwise, people
feel it's too expensive and get scared. Ultimately, it does not make any
difference in the fundamental but I prefer split. It does not only give
buying power to individual investor but you also feel to have lot more stock
after split and feel better. This is just a sentimental aspect.
|
No Split yet!
|
If one is still in a dilemma then
it's better to have some position in both the company. But I personally will go
for MA based on fundamentals and growth prospect. But as I say,
it's your money and it should be your own decision what is better for you.
These are merely my own opinion.
Disclaimer: This is not an advise to buy/sell any stock rather a personal
opinion. Please contact a money manager/professional for any professional advice.
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