Master of Its Domain?

Last November I mentioned that I liked Mastercard, symbol MA, before its last earnings release. The stock was trading in the 80's at that time and I suggested a run up to $100 was very possible. Well, it closed around $110 last Friday. So what's next? Mastercard is reporting its 4th Quarter Earnings this Friday, February 9. The analyst estimates are around $.17/share. Forget about that number. They will crush it more than likely. Just like Google and Apple, I see a big upside in the earnings for Mastercard. The fourth quarter of the year is when most people use their credit cards. Also, Bank of America has already reported a 17% in its credit card business. Well, Mastercard is their biggest client. New studies have shown that the savings rates for Americans is the lowest since the Great Depression. This to me implies that people spent and lot more than they made last Christmas( go figure!) via the good ol' credit card. Prudential raised its price target on Mastercard to $130 and Jim Cramer says $160 is the right value for the stock. I think somewhere in between is a good estimate $145-ish). Friday's earnings will play a big role as to where the stock is heading this year. If the numbers arent stellar, the stock will have a serious correction. However, I would buy the stock on a 10-20% correction. As I mentioned earlier, I think this stock is a core holding for a growth portfolio. GO BEARS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Exxon Mobil

I like XOM here. Its pulled back and the oil stocks in general have been hit by lower oil prices. Exxon Mobil reports earnings on Feb 1. I think XOM is a good contrarian play here. Looking at the chart, the long-term uptrend is still in tact. Its not unreasonable to see Exxon Mobil trading near a $100 in a couple of years.

What's Cooking in the Microwave?

Here is a stock that I think has bottomed in the short-term and possibly long term as well:

Hittite Microwave Corporation.

Who?

That's right, stock symbol HITT. Trades on the NASDAQ for about $32/share. So what do they do? Here is the profile from yahoo finance:

Hittite Microwave Corporation engages in the design and development of analog and mixed-signal integrated circuits, modules, and subsystems used in radio frequency, microwave, and millimeter wave applications worldwide. The company’s product portfolio comprises amplifiers, attenuators, frequency dividers and detectors, frequency multipliers, mixers and converters, modulators, oscillators, phase shifters, sensors, and switches. In addition, it supplies custom semiconductor components to its customers. The company’s products are used in a range of wired and wireless communications applications, such as cellular telephone base stations, microwave and millimeter wave radio systems, broadband wireless access systems, and direct broadcast satellite systems. Its products are also used in detection, measurement, and imaging applications, including military communication, targeting, guidance, and electronic countermeasure systems; commercial, scientific, and military spacecraft; automotive collision avoidance systems; medical imaging systems; and industrial test equipment.

Enough about stuff no one really understands. The stock is technically right to buy here. This is also a good company that makes quite a bit of cash. The stock is less volatile that the market in general given its Beta of .45. This stock has also been a favorite on the Investors Business Daily newspaper which ranks the top 100 stocks. The stock is down from its high of about $51/share because its last earnings report was a little less than Wall Street expected. Bottom line, I think the stock is worth the risk in the low 30's.