Raw Greed, Items to Research

Posted on October 10, 2007 , filed under Stocks | Print This Post

Here are a few investment ideas to research going into 2008.

Jet Blue [[JBLU]]

Oil prices are trading around $80 at the moment per barrel of crude. A breakdown for oil into mid $70’s should mean good things for the airline industry. Jet Blue has been hit by a number of delayed flights which has put pressure on earnings. Non-weather related delayed flights should be a short-term operational fix. After a large spate of delayed flights at major airport hubs, airports are now seeking to improve efficiency. President Bush has announced support and new legislation aiming at improving airport infrastructure. I expect things to improve for Jet Blue by early 2008.

I am considering an investment in JBLU at under $9.

Visa IPO

This one is probably going to be huge.

Taken from a AP press release:

A year after MasterCard Inc. [[MA]] sold shares of itself to the public, the Visa credit card network is preparing an initial public offering of its own. Lehman Brothers analyst Bruce Harting said that because MasterCard is the publicly traded company that most resembles Visa, the company’s stock will probably be valued similarly.

That bodes well for Visa. MasterCard’s share price has quadrupled since it went public in May at less than $40.

Goldman was the underwriter for MA. Getting allocation required some good connections or a strong client relationship with Goldman. It is reported that Visa’s underwriters will be Morgan Stanley and Lehman Brothers.

Discover Financial Services [[DFS]]

Discover Financial Services was a spinoff by Morgan Stanley. I would consider an investment in DFS depending on how well Mastercard and VISA perform in 2008.

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