I will just keep them on my watch list. You are right even after the drop it's not THAT undervalued compare to "unknowns"
I am still seeing lots of negative flows into ma/V.
Visa is same price it was in sept 08, 09, 10 and touching that price again. Also option expiration today.
i found this on streetinsider.com
FBR Capital on Financial Institutions: The Durbin Debit Downer - Making Sense of the Federal Reserve's Proposal
More News related to MA
FBR Capital on Financial Institutions: The Durbin Debit Downer - Making Sense of the Federal Reserve's Proposal
MasterCard (MA) Says Fed Regulations Would Harm Consumers, Provide Windfall to Large Merchants
Federal Reserve Regulations Would Harm Consumers, Provide Windfall to Large Merchants
Visa (V) and MasterCard (MA) in Free Fall
New fed rules could cut debt fees by 80-90% - Analyst (MA, V)
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FBR Capital on Financial Institutions: The Durbin Debit Downer - Making Sense of the Federal Reserve's Proposal
BofA Merrill Resumes Regional Banks: MI, SNV, FHN at Buy, HBAN, BOH, CBSH at Neutral, ZION, CYN, TCB at Underperform
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Jefferies Starts TCF Financial (TCB) at Hold
FBR Capital on Financial Institutions: Transferring Coverage of CMA, TCB, HBAN, and ZION
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FBR Capital on Financial Institutions: The Durbin Debit Downer - Making Sense of the Federal Reserve's Proposal
Notable Analyst Rating Changes 12/17: CBS, AMAT, MDT, AEIS Upgraded; V, DLR, BBT, SJM Downgraded
Active equity option families in first 30-minutes of trading according to Track Data are: C ORCL RIMM V EBAY
Goldman Sachs Removed Visa (V) From Conviction Buy List On Regulatory Overhang
Visa Inc. Statement Regarding the Federal Reserve’s Recommendations on the Dodd-Frank Act
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FBR Capital on Financial Institutions: The Durbin Debit Downer - Making Sense of the Federal Reserve's Proposal
FBR Capital Reiterates an 'Outperform' on MYR Group (MYRG); Transmission Award Announced, More Possible
More News related to Analyst Comments
December 17, 2010 11:56 AM EST
FBR Capital on Financial Institutions: The Durbin Debit Downer--Making Sense of the Federal Reserve's Proposal
FBR analyst says, "The Federal Reserve’s proposed rule on debit card interchange fees and routing was generally more onerous than expected: (1) the proposed reduction in interchange was larger than expected—a 75%, on average, transaction, versus a high-end expectation of a 60% reduction; and (2) the debit interchange fee was set as a flat fee of $0.07–$0.12 per transaction, regardless of the dollar volume of the transaction. Given the substantial reduction in debit fees, the question of exclusivity, which may end up requiring unaffiliated PIN and signature debit cards, is less of an issue. There is still considerable uncertainty about major portions of the proposal, as the Federal Reserve has released a variety of options on each of the key provisions. With that said, we do not anticipate a significant departure from the draft rules to the final."
"We expect the issuers (banks) to bear the brunt of the reduced debit economics, particularly the regional banks, as they have less diversified earnings; but, over time, we expect the banks to recoup the majority of revenues via new/increased fees. Most exposed among the banks is TCF Financial (NYSE: TCB)(Market Perform), which would have experienced an estimated 6% loss of revenue in 2010 had the proposal been in effect."
"With regard to payment networks, while investor sentiment will remain negative in the near term, given the uncertainty surrounding the ultimate impact of the new economics, we do not believe lower network fees are a foregone conclusion, as we believe the proposal provides some flexibility for networks to shift costs among payment network participants. With both payment network stocks down substantially, we reiterate our Outperform ratings on both Visa (NYSE: V)(Outperform) and MasterCard (NYSE: MA)(Outperform), with a preference for MasterCard in the near term, given its lower debit exposure." |
