Visa, Inc. (V)

ATWDLimited (< 20) Submitted: 3/19/08 4:42 PM : Start Price: $58.20 V Score: 21.71

VISA IPO is awesomely priced. Think about it, Mastercard's IPO i 2006 was for $39 as hasre and had under 1 billion card holders, with half the transactions of VISA. Now if you include inflation, that makes it 0.94 dollars*44= 2006 value, $41.36, just 2$ more for double the transactions, $3.1 trillion in processing and $5 billion in revenue. No question, the worlds largest credit card will enjoy nice profits and if it follows its rival company Mastercards stock, you should see massive gains.

Company's current market position:

*As on September 30, 2007, Customers of "Visa" (mainly financial institutions) had issued 1.5 billion cards carrying it's brands. In other words, currently nearly 1.5 billion cards carrying Visa's symbol are under circulation the world over.
*Visa-branded cards are accepted in more than 170 countries around the world.
*Company has shown nearly 76% growth in revenues and nearly 107% growth in net income in the quarter ended Dec. 2007 as compared to the quarter ended Dec. 2006.

Valuation/Offer value:
*At offer price of $39.50, Company's shares are available at PE of nearly 19 (annualizing first quarter FY 2008 adjusted net profit)

Bottom line: Great company, good growth as ecommerce expands, gets in on foreign countries growth and has a nice PE.

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