MGI - Moneygram International, Inc. (NYSE Stock)

[lovemoney]

For those looking for a slow burner in the long term. Moneygram Intl is still at the low end at around $2.50 but it's 23% higher than last year and starting to come up out of the bottom of what looks like a long round deep cup to be forming on it's way back up hopefully to around $30. Good one to just let sit and forget about unless it were to for some reason spike up faster.

Weekly chart shows MACD crossed and CMF buying pressure increased for beginning of year. PPS closing in on 100ma. RSI climbing. Vol increasing into second half of cup.

Weekly chart:
MGI - SharpCharts Workbench : StockCharts.com

MoneyGram International, Inc., through its subsidiaries, provides payment services worldwide. It operates in two segments, Global Funds Transfer and Payment Systems. The Global Funds Transfer segment provides money transfer services, money orders, and bill payment services to consumers, such as unbanked, underbanked, and convenience users. This segment also offers its money transfer services on the Internet through its MoneyGram eMoneyTransfer service, as well as through a network of retail agents in North America, Latin America, western Europe, the Middle East, the Indian subcontinent, the Asia Pacific, eastern Europe, and Africa. It sells its money orders under the MoneyGram brand, as well as on a private label or co-branded basis with retail agents. This segment’s bill payment suite of services allow consumers to make urgent payments or pay routine bills through its network to various creditors in credit card, mortgage, auto finance, telecom, satellite, property management, prepaid, and collections industries. The Payment Systems segment primarily provides official check outsourcing and sale of money orders, as well as automated clearing house processing services to financial institutions, thrifts, and credit unions. MoneyGram International distributes its products through a network of sales and marketing teams to agent distribution channels, such as general merchandise, grocery, drug and convenience store retailers, check cashing, and bank locations. The company was founded in 1926 and is headquartered in Minneapolis, Minnesota.

[BadThad]

Looks like a good find to me, I might throw a little cash at this one as a spec play. Thanks for the post.

The most appropriate valuation measure for MGI is the Price to Sales ratio. The Price to Book ratio is excluded since it most likely underestimates the company's book value by overlooking hidden assets such as intellectual property, while the PE and PEG ratios are not meaningful. Therefore MGI seems valued at a discount with a Price to Sales ratio of 0.1774, one of the lowest in the Misc. Financial Services industry.

MoneyGram International, Inc. - Google Finance

EDIT - TDA is screwed up, it shows positive earnings for the last 4 quarters, but as I read they have been losing each quarter.....hummmm.

[lovemoney]

It's speculative. But I've got a little already. Stock declined some after the earnings two weeks ago but held higher low. I'm Watching if it breaks the last high at $2.80 in this latest advance then I'll buy more. Nothing I can't afford to lose. Recovery will affect in long term I believe. It's a long hold for me.

Chart: MGI - SharpCharts Workbench : StockCharts.com

Following are significant items affecting operating results during the second quarter of 2009 as compared to the second quarter of 2008:
� Fee and other revenue decreased 1 percent in the second quarter of 2009 to $278.5 million due to the decline in the Euro exchange rate and money transfer (including bill payment) average fees, partially offset by money transfer transaction volume growth. Money transfer volume (including bill payment) grew 1 percent. In the second quarter of 2009, the rate of growth in money transfer volume slowed, reflecting continued slowing economic conditions and a growing volume base.

[lovemoney]

Broke that 2.80 high Tuesday and I bought more. Resumed a nice climb yesterday and closed even today. If it pulls back as it's been doing regularly I 'may' get some more. I've got a small position and I'm still holding this long in what appears to be possibly forming a long term cup pattern.

Recent press is they've opened several new locations internationally, includng plans to double the number of locations in South Korea and has opened 1200 new locations in Mexico and Central America. The underlying cash transfer and payment business is doing fine but has alot of debt from past cash infusions from investors like Goldman Sachs and Thomas Lee, and as was mentioned has been losing money due largely to the interest expense each qtr up against recent bad economic conditions. As one columnist wrote this week, "Buying this stock is a bet on management's ability to continue growing revenue to the point that MoneyGram earns more than the cost of that debt load. It is worth a small speculative position for a potential long-term large payoff."

This is definitely a speculative buy.

[lovemoney]

This has bounced back very fast and steep from the drop in November and December. Set up to possibly break out of old high soon.

[lovemoney]

Moving their headquarters to "Uptown District" of Dallas, Texas. " Bills itself as one of the world's largest cash transfer firms"..."On Nov. 1, the company will occupy 45,842 square feet of space on two floors of the Harwood Building."..."Nearly 10 percent of our agent locations in the U.S. are in Texas". "Locating the company's headquarters in Dallas provides us with important access to agents, customers and the growing Latin America market as well as multi-lingual employees with Global experience."

Dipped in August and Sept. and has worked it's way back up to 100 dma. May consolidtate at this level for a while. Watching to see what it does in coming months if it breaks 2.65 and goes to 2.90.

[BadThad]

Dang, you should have brought this thead up a few weeks ago when it was down to $2. Looking at the charts I would have jumped in!

[BadThad]

Where'd they get the cash?

MINNEAPOLIS--(BUSINESS WIRE)--MoneyGram International (NYSE:MGI), a global leader in the payment services industry, announces it will make an optional $30 million prepayment on its tranche B term loan under the senior secured credit facility. The loan payment will be made today, Wednesday, Sept. 29, 2010.

Including this latest payment, MoneyGram International will have paid $277 million toward its outstanding debt obligation. This represents a 28 percent decrease in the company’s total outstanding debt since Jan. 1, 2009.