Visa, Inc. (V)

planesmart (< 20) Submitted: 5/12/08 10:32 PM : Start Price: $81.56 V Score: 1.55

Visa
1) Look closely, and you see that there expenses are advertising and computers moving transactions. This means that they can control expenses.
2) Visa is having a 20% increase in gross income.
3) Visa has been an association making money hand over fist, then must get more efficient now that they are public.
4) A lot of the tings they are doing are free to the customer, is they start charging it will help bottom line.
5) 33 billion. They increased assets 25 billion. Now what can they do with 25 billion. Invest it? wht percent? 5% Isn't that 750 million. Which can increase the bottom line.
6) Risk, They do not loan money, they just transfer transactions. The banks problem will only affect the preception of Visa, not their actual profitability.
7) The experts. These same experts were saying to sell MasterCard at 60 a share. They want a wait and see attitude with VISA.
8) With easy Math, VISA can easily be making a net profit of 2 Billion.
9) As the institutions see the stability of VISA, then they will move into Visa.

My prediction is that MasterCard will end up a little over 400, and Visa will end up with 200 in 2 more years.

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