MasterCard's Still a Sweet Deal

This is one IPO that was a bargain. Just imagine its normalized earnings power.
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This column was originally published on RealMoney on Nov. 1 at 10:17 a.m. EST. It's being republished as a bonus for TheStreet.com readers.

Memo to the

Federal Reserve

: Please do

not

read the

MasterCard

(MA) - Get Report

release. Please. I beg of you. Because I am very concerned that you will tighten interest rates immediately if you do. With that number, the consumer is not just swinging into high gear, he's going

nuts!

He's buying left and right!

When you couple that with the bottom in housing -- remember, that's my view of what's happening there -- and the surge in precious metals, you get a scenario that, if I were at the Fed, would make me consider another tightening. There are tons and tons of better than expected numbers. This is not one of them. This is one of those

"you have no idea what our normalized earnings power can be"

stories that totally explains the levitation that has occurred in this stock since it came public.

This piece of merchandise was severely mispriced in favor of the buyers, not coincidentally, because it came on the heels of the disastrous

Vonage

(VG) - Get Report

deal, which was totally a giveaway for the issuer. MasterCard is a reminder of how much money can be

made

when the bankers decide to be charitable and the company doesn't want to burn its newfound shareholders (the opposite of what Vonage did).

Always be on the lookout for IPOs that are tepid, like MasterCard's, like

SAIC

(SAI)

. Those are the best bets because you can get a lot of shares and build a nice position without paying up.

What an earnings beat! What a great measure of spending -- aided, of course, by lower gas prices. What a repudiation of the

Wal-Mart

(WMT) - Get Report

numbers! What a game!

Random musings:

If you love following stocks as much as I do and want to help me help people make money, you're someone I need. I'm looking for an experienced research assistant based in the New York metro area to help me out. (CFAs welcome.) Please send your resum

and cover letter to

resasst@gmail.com.

At the time of publication, Cramer had no positions in any of the stocks mentioned.

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