A year ago Bhh recommended buying MA at 45 on opening. I guess he called that one right.

Watch out for people trying to spin that margins number. They (MA's management) said 1%-2%
is more likely, not that operating margins are eroding or going into some kind of
tailspin. I don't own the stock but throwing the point out there because alot of members
of the financial press are notorious for either completely (blatantly?) misinterepting the
information or just going for shocking headlines.

Last edited on: 02-09-2007 10:27 pm

Thank you: I hadn't heard his reaction.

For whatever its worth, around 10am today Cramer on realmoney.com gave Master Card props
on their number and said he still liked the stock.

You use the two lowest points on the chart? How did you come up with this approach if you
don't know if it's valid? I'd like a sort of rule-of thumb here. I was really hoping
Cramer would comment on this one on CNBC just now. What an ugly day: it started off so
great!

Last edited on: 02-09-2007 03:00 pm

Are you're worried about your reentry point? I've started using charts in this regard. I'm
by no means a chart-ist, but I bring up a 3-month chart and if the stock is trending
higher I put a ruler under the dip points in the line and trace a line ahead of the stock
price. At whatever price my line will hit the stock line, I buy back around that price. I
have no idea if this has any validity to it but it keeps me, peronsally, from hemming and
hawing and missing a buy-back opportuntiy.
I've been a little spooked by the financial-related stuff in the market, (this Fortress
thing didn't help--reminds me of those old Tech IPOs) and I've been getting out of
everything except GS. I think the whole credit, refinancing, student-loan business has
gotten out of hand over the last few years. The fed probably should have raised rates to
make everyone less comfortable with stringing out their debts. But I'm a little old world.
My father told me never to buy anything I didn't have the cash for.

Yes, I did sell some yesterday and I am so glad I did, but this is getting ridiculous!

I've been playing it this way (not MA but generally): If a stock has a good run up right
before earnings, I take some off the table. It usually sells big on the news (even if it's
good news) and then I buy back on the dip with that extra cash if I like where the comp.
is headed. If the stock is flat or down before earnings I just let it ride. I'm a little
surprised Cramer didn't tell that guy last night to schnitzel ahead of earnings. We're no
longer going to get those absolute blowout old google-like numbers that will springboard
an already hot stock through the stratosphere.

Yeah, I remember when stocks would beat the street and go up. Anyway, margins appear to be
the excuse o' the day.

"But the company said on a conference call that the nearly 3 percentage point improvement
in its 2006 operating margins excluding items could be difficult to match in 2007,
spurring heavy selling in its stock." Got that from Reuters.

MA is basically going back to where it was 3 weeks ago. I bought it after the IPO at $45
so I'm not going to be shaken out like a chump.

Would not being able to match the growth in margins cause the sell-off?