Diamonds and Dogs
June 21, 2010Diamond
Visa has seen an increase in the market since the regulation of the credit card swipe fees and debit card transactions. The proposal to ban the regulation of fees that card networks and even banks charge to debit card consumers was recently passed. The new rules that consist of penalty fees not being able to exceed the dollar amount of the consumer's violation and the issuer cannot be charged more than one fee for a single event or transaction goes into effect August 22. Today Visa's stock was up to $81.08, an increase of 5.2%.
Ralcorp Holdings INC, RAH
Ralcorp Holdings Inc manufactures, distributes, and markets food products. The stock is the dog of the day dropping 7% or $4.42 to $57.80. Ralcorp just recently bought American Italian Pasta, whose shares saw a significant incline today, for about $1.2 billion along with 2 cracker-mackers that will hopefully turn into a considerable profit in the upcoming months. The decline in the stock can be seen related to the competition Ralcorp sees in its cereals. Ralcorp owns Posts Foods and some store brand cereals but has seen profits plummet due to a price war that narrowed the price between private label and name brand cereals.