The Case for MasterCard
Yesterday was a great day for monopolists and anticompetitive practices because the Supreme Court issued a ruling that makes it much more difficult to pursue with civil antitrust suits.
In a case such as this, there is always a winner, and here it is
MasterCard (MA Quote - Cramer on MA - Stock Picks), he said. MasterCard has been "nothing but a winner" since Cramer first recommended it, offering shareholders a triple, he said.
However, there has always been a "dark cloud hanging over the stock" even though it has consistently delivered good numbers. That dark cloud, Cramer said, was antitrust litigation.
American Express (AXP Quote - Cramer on AXP - Stock Picks) and Discover sued Visa and MasterCard for antitrust violations, but now this suit should get dismissed, he said.
The one reason not to own this stock is now gone, Cramer said. Negative attention because of the suit has made people sell the stock, but now he believes "the short-covering tsunami" should send this stock higher.
Moreover, not one of the reasons to buy the stock has changed, Cramer said. The stock continues to have "big international growth," and it is gaining market share. Bears are worried about Visa going public, "but certainly you shouldn't let Visa scare you out of this great stock," he said.
Cramer said he can't see any reason why not to invest in MasterCard.
TheStreet.com Staff
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