Thursday, February 8, 2007

MA Earnings Expectations Too Lofty?

Mastercard reports Q4 earnings tomorrow before the open. It's expected to earn 17cents/share on revs of $827M.

The Street.com's article discusses how expectations may be too high and that the stock now trades at a premium multiple. I'd have to agree. But I'll wait for the news and see if there is any IV declination and sufficient net credit going into next week to play.

We'll keep on eye on how the news is met.

2 comments:

OptionPundit said...

HI OJ, I actually have different POV and I am personally bullish on MA. The insiders can't sell the stock yet, will hv to wait sometime and therefore won't want to have numbers look bad. I saw the earning estimates are also trending up for the 7days, 30days, 60days and 90days. But that's me and I may be wrong :)

I decided not to play MA as I couldn't find any good risk/reward combination. Instead I played AKAM, AFFX, PMTI , NTRI and seems it was my day :)

There is good discussion going on in the comment sections here(http://www.optionpundit.net/trade-ideas/results-of-credit-and-earnings-play )that your readers may find insightful for options trade management.

Cheers and have profitable trading,
OptionPundit

Terence said...

Thanks OP. Well it looks like profit takers have moved in on poor old MA. We'll see where the bloodletting will stop. OJ