Visa, Inc. (V)

The economy is beginning to tick upward as will credit card purchases.

Visa has shown stability in even the worst economy. They are the largest company in the industry based on the number of cards issued. Their exposure to any downturn in Credit card usage will be balanced by their exp of debit cards. Strong leadership, an excellent product, and a great commitment to their shareholders makes this a company to hold for the long run. The dividend could be higher but the capital gains you should experience will make the investment well worth it.

Strong Earnings Report

> Overpriced, has to come down
> Stupidly high pricing ... US should start limiting profits by regulations, like Europe. Over the years, technology and supporting costs came down. But customer pricing remains high

I am going to do a Cross Sectional Analysis on five of the largest credit card companies, analyze the risk involved with the industry and determine on a relative basis which stock is undervalued. The companies I am evaluating are Discover Financial, American Express, Visa, Capital One and MasterCard…

Read the report at
http://stocklook.blogspot.com/

Or after Wednesday, October 28
http://stocklook.blogspot.com/2009/10/credit-card-stocks-dfs-axp-v-cof-and-ma.html

overvalued

It's a fine brand, I just don't think it's worth 37x earnings

strong steady earnings. high insider owner ship.companies like this usually have a higher p/e. undervalued.

The market's overconfidence has supported many financial stocks, including ones where growing unemployment and higher taxes will hurt revenue. At some point over this next year, the stock price will better reflect this risk and the lower expected profits.

Visa will Gain momentom as the economy inproves throughout the years ahead. With the trend of going paperless the years ahead should give visa a leading role in paperless transactions. Thus inproving its bottom line.

VISA looks a little expensive at 36 x reported earnings. That fact coupled with the weakening macro-economics in the US suggest that transaction volumes will be dropping over the next few quarters (maybe longer). Also I am already starting to hear some convincing rumblings about a possibly weak Christmas retail season (see David Rosenberg of Gluskin+Sheff). Look to Q4 earnings in early 2010 to be a make or break report for V.

I have not done nearly enough due diligence on Visa to make a definitive call but the negative factors I have referenced above, coupled with the fact that I believe Visa and Master Card are more tied to the macro-economy than some other firms gives me confidence in making an underperfrom call in CAPS.

Overvalued right now

follow master??

moat-network effect, consistent earnings, no financial obligation for any credit card losses-that goes to banks/cu issuing credit cards.

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

Recovering economy will be a huge boom because everyone pays with plastic- even when not buying on credit (debit cards). World-wide recognition, and politicians are too busy fiddling with health care to worry about reforming the credit card industry. Buy and hold until health care is decided, and then start watching for Washington to pay attention to credit cards. Consumers have been fleeced with double digit interest rates for too long, and eventually Visa and Mastercard are gonna get the smack down.

If you think waiting 37 years to make back your money is good I don't know what to tell you.

The late 20th century desease

known as consumerism

in death throes.

Awwww.

VISA too.

double awwww

Looks really pricey right now. Price = 30 x TTM cash flow. Not good.