Visa, Inc. (NYSE:V)

CAPS Rating: 4 out of 5

Visa operates a global electronic payments network, allowing customers to use credit cards instead of cash.

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Player Avatar loststallion38 (65.94) Submitted: 3/20/2008 2:20:04 AM : Outperform Start Price: $55.81 V Score: +224.25

Well if you don't know you should. Visa has launched its IPO and the stock is on the market. First day $44.00 to start and at the end of the day $56.50 and that is just the beginning. Mastercard launched last year at $39.00 a share and it stands at over $200.00 a share. It's not everyday that you can get in on the ground floor of the big daddy business but here is your chance. Visa is the power house in the credit card world and is just plain fat in cash. It lives on transactions all over the world from Debit and Credit cards for gas to groceries, paying bills and purchases online Visa will only grow as we move to a cashless society. Keep your eye on this stock it won't be in double digits for very long Visa will exceed Mastercard in the next 6 months to year if not sooner.

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Member Avatar kirkw1 (< 20) Submitted: 3/22/2008 11:00:28 PM
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i agree, this will go to 390 or more. This is the future of money and remember the Olympic games are taking place in China, Visa has a big stake in the games.

Member Avatar funkiestduke (97.51) Submitted: 3/25/2008 2:18:29 PM
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I Agree this is a must have in the current market and if mastercard jumped that high visa is sure to exceed being that they are a bigger company. They Nature of there business should also help since they are not credit issurs rather credit prossesors the credit crunch of current should not effect there bottom line

Member Avatar redsammy (66.64) Submitted: 3/25/2008 4:00:08 PM
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I agree with the comments made so far, especially the comparisons with MA. V may get a flat tire or two down the road, but as the largest plastic card issuer in the world (I believe), it has miles to go before it sleeps. The downside risk appears neglible. The upside potential is beyond the horizon. This is one to put in the vault.

Member Avatar withoutlimits (82.61) Submitted: 3/26/2008 9:53:43 AM
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Ground floor? It already has a $25 BILLION market Cap!

Member Avatar tmunny (29.77) Submitted: 3/26/2008 11:10:18 AM
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"Keep your eye on this stock it won't be in double digits for very long Visa will exceed Mastercard in the next 6 months to year if not sooner."... Don't hold your breath. You do understand just how many more shares of Visa exist in comparison to Mastercard, yes? If you hadn't noticed, you may just want to check. Let's not get carried away with these overzealous predictions.

Member Avatar loststallion38 (65.94) Submitted: 4/2/2008 1:49:35 PM
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I really love a good debate. Everyone makes really good points. (All visa does is simply transfer money on sales from one bank to another ... wow ... surely smart retailers will learn that they can cut visa out !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!). I work at one of the largest retailers in the world and we do have a card to work around fees of credit card companies, but it is not retailers who dictate what consumers use it is consumers and until the consumer can use a oh say a Macy's card or a Best Buy card at every place a consumer spends money to pay for products and services. Visa, Mastercard and the like aren't going anywhere and as far as loose banks not caring, Oh I think they would care. How far would any bank have gotten, even Bank of America or J.P. Morgan Chase, without the link of Visa to loan the money to consumers to get there interest rate fees. That link might get replaced but it won't be done by retailers it will need to come from the banks themselves who for now even use Visa and Mastercard on their own debit cards. (You do understand just how many more shares of Visa exist in comparison to Mastercard, yes? If you hadn't noticed, you may just want to check)You are right to say over zealous as I have reread my pitch 6 months to a year may not be enough time but Visa will over take mastercards ground after short sighted investors make there profits from selling there 44 at what is around 61.00 dollar shares because of there fear Visa will crash and burn take it now mentality. Yes I do know how many shares exist and i also know that Visa is worth twice the income of Mastercard as a company. All in all just as in any stock there are risks and Visa is no different, but the bottom line is what they will be measured by, even after they weather the litegation storms of how they have done business. This company is run smart and profitable with a strong bottom line and will be what other Credit Card companies are measured by which they already have been doing before they went public.

Member Avatar loststallion38 (65.94) Submitted: 4/2/2008 1:54:29 PM
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Please excuse the typos, lol. (There) being meant to be (their) in my reply. Spell check needs to be on this forum,lol. Sorry guys.

Member Avatar loststallion38 (65.94) Submitted: 4/2/2008 1:57:14 PM
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Sorry for the typos, lol. (there) was to be (their). Spell check needs to be here,lol. Sorry guys.:)

Member Avatar cubanstockpicker (21.06) Submitted: 4/9/2008 10:58:23 AM
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Visas IPO was made by all the banks that made it go public so they can get their money back from their credit losses. Watch them start selling soon enough

Member Avatar matz2008 (< 20) Submitted: 4/10/2008 1:04:29 AM
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do you understand market at all?you do NOT compare companies by a share price but by a market value...Mastercard was $39 at IPO but it was a 6 billion $ worth company. now at more than $200/share it is a 30 billion $ one.V at $65 is already a 50 (FIFTY) billion $$$ company with high P/E and much less potential to grow than MA had right after its IPO.

Member Avatar YoungInvestor99 (99.02) Submitted: 4/22/2008 3:33:34 PM
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The market cap for Visa vs. Mastercard is a good bear argument, albeit I think Visa has a larger market share.Either way, its clear this stock is heading up and it is going to be hot for a while. Initial investors will probably get at least a double out of it.

Member Avatar chuchunga (25.31) Submitted: 4/24/2008 8:56:45 AM
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All the investors that missed out on the MC IPO knew not to miss out on the Visa IPO and they jumped right away on the stock sending the price up immediately. This does lead to the arguement that the stock has become overpriced. Visa though has a much larger market cap and a huge market share over MC, Amex, and Discover. Banks are moving to the practice of charging a fee to a customer for using Visa debit cards as debit transactions (which generally cost retailers less) instead of credit transactions, thus encouraging them to make these credit transactions where Visa rakes in fees. Visa before it's IPO had no issues making money either. Look for the stock to rise again when their quarter results post on the 28th. The stock might see a little resistance to the 100$ mark if the consumer spending outlook turns worse, but otherwise expect the stock to steadily climb for the next year or so.

Member Avatar BlueChipKittie (57.39) Submitted: 4/26/2008 1:29:41 AM
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I agree with you on your blog statements. Visa will exceed Mastercard, I'm thinking about the same time frame under 6 months. Excellant Pick!

Member Avatar FleaBagger (28.79) Submitted: 4/28/2008 12:19:02 AM
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Way to go, withoutlimits! That was beautifully concise. I want to ask everyone: don't you think Philip Morris International (PM) is more like Mastercard, considering the market pessimism, doubt, and "ick factor" surrounding its IPO? MA made people a bundle not because all credit card companies are great stocks to buy (look at AXP over the last few of years), but because MA was shrouded in doubt. I will be surprised if V outperforms PM from today (Apr 28, 2008) through the next 1-5 years.

Member Avatar JDFortuneGroup (< 20) Submitted: 5/1/2008 8:36:25 AM
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return on share price is the bottom line who cares about the market

Member Avatar porteousdc (< 20) Submitted: 5/1/2008 6:17:54 PM
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AMEN BROTHER STALLION.......MA IS AT $294 ........ VISA = BETTER AND BIGGER CO.DO THE MATH.....(WRONG)THE MATH HAS BEEN DONEIT'S CALLED "BUY"

Member Avatar jyothishnair (81.39) Submitted: 5/2/2008 6:16:57 PM
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I just don't understand the way you value this... comparing stock prices is a waste of time and energy.MA is trading at about 30 times earnings and Visa is currently at 43 times or so... Why would Visa demand a premium to MA valuation? I think MA has a bigger international presence...

Member Avatar mcnasty91 (45.18) Submitted: 5/5/2008 10:42:51 PM
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Some of the comments on this topic are hilarious. I bought V with real money and have already doubled my money. If you read the boards at Yahoo!, NY Times, and other sites there were so many people who kept saying "Visa is just riding the coattails of the IPO hype it'll dip back into the IPO pricing. Well, I'm pretty sure that hasn't happened. These are also the same people who said that Visa would never break $70 and would you look at that, it did. I sometimes wonder about the IQ of some of the posters here because either they don't do research or like arguing stupid points for the sake of arguing. Firstly, retailers really can't cut out Visa because Visa has partnered with most major banks to sponsor the plastic you use. For instance the Nordstrom's Card I have is a Visa, so every time I use my card Visa gets a cut. The reason why retailer's can't realistically cut out the consumer is because so many people already use Visa and lets say a Macy's actually does issue its own card it would need to in essence form its own credit card company to have that card accepted anywhere besides its store. In others words, thats never going to happen. Also, the fundamentals of MA and V are the same they process transactions and take a fee so there's not going to be a crash and burn once people see the fundamentals because we already know that Visa is better run and better at what it does than Mastercard.I agree that Visa may not be going to Mastercard's level in share price anytime soon but I do not doubt that it will be in the $100s in the near future. Yes, it does have some faults, such as the lawsuits and high number of outstanding shares, but this is as close to a sure thing as you can get in the stock market. It is very well run and will only increase due to cost cutting and increased margins. There's a reason why this was the biggest IPO ever and thats because Visa is a great company with market dominance and room to grow. Here's a quote from CNN Money, "The Nilson Report projects that paper-free payments will account for 70% of all payments by 2010 and that 56% of sales will be conducted via credit and debit cards from the current 40% or so. Visa, with its iconic brand, is poised to capture much of that growth. Morningstar estimates that Visa's total dollar volume will grow at a double-digit rate for the near future."Here's another interesting quote that really hammers home the point, "in 2006, Visa processed 44 billion transactions, or 45% more than the number processed by its three biggest competitors combined -- MasterCard, American Express and Discover. Total value of Visa transactions processed in the past fiscal year: $3.5 trillion. So, it is the market leader by far with and the fact that more people than ever are paying with plastic makes this a bearish stock? I don't see any logic in that argument at all and the people that write those negative comments are those who have not done due diligence or didn't buy when they should have but considering that the stock still has room to and will grow I wouldn't hesitate to tell anyone to buy. Apparently, Goldman Sachs and Reuters research also do too according to my brokerage. So, please critique the stock all you want but try to at least present a decent argument and theres one thing you can't argue with and thats the return so far, and as stated before I see no reason for that to not continue to be the case. If you don't like the stock, thats great, its more money for shareholders like me.

Member Avatar naeaswami (79.10) Submitted: 5/10/2008 8:40:44 PM
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Why do some stocks with similar P/E and market caps trade so differently, in volume and in price? Desirability. Visa simply has 'charisma' to investors. It's numbers are strong all across the boards. People just want to own this stock and it has momentum. Visa will blow away the S&P500 for a long, long time...

Member Avatar Daneric40 (63.33) Submitted: 5/16/2008 7:30:14 PM
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Whats primarily driving the price up now is that major institutions are snapping this up at a constant rate and holding. And with the FINANCIAL sector looking putrid thru 2008 and possible a good portion of 2009, VISA is being snapped up by the millions of shares every week to fund holders and what not because they NEED a good financial player and VISA fills the bill nicely. Just peek in at the number of major holders, it goes up every day, every week substantially along woith the number of MILLIONS of shares held and they are not about to ROTATE out of VISA any time soon. What would they buy? Beaten up Washington Mutual who is still going to get ripped the rest of the year hiding more losses? Citigroup? They too have more losses to come.It is a safe play on that info alone. It recently found a new floor in the low $80s after testing the $90 mark and look for a breakout soon above $90. Insider just snapped up shares in the low $80's. Yes it may be overvalued but throw that out the window because it is generating cash (lots of cash), growing by very good numbers and thats good enough for now for the major funds players. Think John Q. Fundmaster is going to say tomorrow, "Gee, Visa has a high PE and is overrated , think I'll dump it." nope they move in herds and right now the grass is lush and green and all the major players are saying, hmm that VISA patch of grass looks nice and green compared to my crappy Citigroup holding." Think I'll go take a few bites.Also I don't think the PE is outta line anyway. The world IS moving to PLASTIC! NOTHING will stop that! IT WILL HAPPEN AS SURE AS THE SUN COMES UP. Nothing short of the Apocalypse will stop it. And MOST of the world STILL DOES NOT use plastic.

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