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Web-Exclusive Follow-Up: MasterCard (MA)

MA was recommended by Dow Theory Forecasts at $336.63 in Investment Digest issue 701, dated August 17, 2011.

“We are removing MasterCard, Inc. (MA) from the Buy and Long-Term Buy lists due to its declining Quadrix scores and high valuation. Projected to increase per-share profits 18% in both 2012 and 2013,...

MA was recommended by Dow Theory Forecasts at $336.63 in Investment Digest issue 701, dated August 17, 2011.

“We are removing MasterCard, Inc. (MA) from the Buy and Long-Term Buy lists due to its declining Quadrix scores and high valuation. Projected to increase per-share profits 18% in both 2012 and 2013, MasterCard still enjoys a strong growth outlook.

“But the shares trade at 22 times trailing earnings, a hefty 35% premium to the peer group. Up 75% since we first recommended the stock in March 2011, MasterCard should be sold. We prefer Visa (V) and American Express (AXP).”

Richard Moroney, CFA, Dow Theory Forecasts, July 9, 2012