Wednesday, December 22, 2010

More Mastercard Incorporated

I don’t do this often, but I decided to average down on Mastercard Incorporated (Ticker: MA) at $217.89. People are going crazy over the proposed action by the fed to cap interchange fees for debit card transactions. I can see banks simply just say “screw it” with debit cards and focus on the more profitable credit cards. I’ve never used a debit transaction and don’t see any benefits in using it. I use credit transactions all the time and on just about everything. However, I do pay off my balance in full and reap the cash back bonus rewards. Ok, I’m veering off topic… I did sell my position in Beckman Coulter, Inc. (Ticker: BEC) at $74.74 (generating a 1% gain over a 3 day period or 120% annualized) to pay for Mastercard Incorporated.

My risk arb play in Airgas, Inc. (Ticker: ARG) isn’t fairing that well. I don’t see anymore downside, but it will take some months for it get up to the 70s. I’ll have to see what happens in the New Year as the judge makes his decision on the validity of the poison pill.

Also Genoptix, Inc. (Ticker: GXDX) is not acting so well, but this company has tons of cash so that should buffer any downside. I have to dig up some more info on this to see what’s going on.


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