Visa: Near-Term Fluctuations Present a Buying Opportunity
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Net revenue of $1.45-billion and adjusted earnings per share of $0.52 per share on stronger-than-expected payments volume and global transactions from Visa Inc. (V) marked the company’s first earnings report as a public company.
However, it may not be enough to calm investor fears about the U.S. economy as shares of the world’s largest credit and debit processor were down nearly $3 in pre-market trading on Tuesday.
Nonetheless, RBC Capital Markets analyst Cynthia Houlton remains bullish on Visa, hiking her price target to $84 from $80 after the results. She told clients that while Visa has identified several cost-cutting opportunities, it will also invest in growth.
Visa has more than $5-billion in cash on its balance sheet, $40-million in long-term debt and an annual dividend of $0.42 that Ms. Houlton said could increase over time.
Visa shares have risen more than 70% since the IPO at $44 in March.
Goldman Sachs analyst Elizabeth Grausam, who has a “buy” rating and $90 price target on the stock, said Visa should continue to command a healthy premium and near-term fluctuations should be used as buying opportunities “while the Street settles into a more consistent view on earnings expectations.”
This article has 472 comments:
NOW- that its safe a few of the seeking alpha posts are starting to tell you what a great co. V is- bottom line- if you are new to investing- Do your own research. Go to the Visa corporate site and take a look at the earnings slideshow and listen to the conference call. Go to sec.gov and find the prospectus for the IPO.
Understand the company- and once you do, you will be convinced this is one of the best buying opps in years.
YES< there are a LOT of shares outstanding.
YES< there are a LOT of pending lawsuits.
BUT- contingency plans are in place to buyback stock, and 3+ billion is set aside for litigation. In the next two/three years- V will overtake Mastercard in global market share AND get rid of most litigation, AND convert a huge block of b and c shares.
Look for a pullback in the next couple of days - (3/4$) that will be your LAST entry point until $100. per share. Go back to all of my posts (type in V on this site and go to other Visa posts)- and you will see that I am the only person that has called 100% of events that have occured thus far- correctly)
e
www.investorslive.com/.../
I've made more in the past month than I made in the past 2 years investing!
Plus I've been buying stock on the dips all along and I have about $75K invested there... I'm looking to grab some more today, especially if it dips to $77 - My prediction... V closes $83 today, $85 tomorrow, $87 on Friday, and breaks $90 on Monday... then it has some ups and downs, but slowly climbs to $100+ by mid June (just placed an order to buy June $100 call).
Thanks.
How can I not be - V @ 84.20 right now-
I'm makin' $$$$$$$$$$$$$$$$$$$$$$...
I have cleaned up myself- and have no doubts the future will be bright for all of us.......
Hey V winner i like the screensaver of Visa.. I think i will put one on the computer also...haha
IF you can hold the stock with no problem for the next few months- you might try to get in at 82. as there may not be a pullback to 80.
Don't invest more than you will lose sleep over-
Good luck
84.26 after the fed announcement @ 2:19
Unless you trade the market daily you could just put in a limit order at 80. and then follow the market
I bought more shares in pre-trading. I won't brag about what i've done - but lets just say I feel that on the 8th day - god created Visa.
I have traded this stock 500 times (in addition to holding my core position)- and have made money 75% of the time :-)
Also - congrats on IPI coming back a bit today. I sold mine the day after the IPO - but I told my wife to buy it- so I have a stong personal interest in seeing her happy........
If you think we are optimistic - look at the options market- INSANE!
Visa (V) – A 2.4% gain for its shares to $82.79 appears to have jump-started the speculative appetites of call traders in Visa. With nearly 130,000 options trading by noon, more than 4 times as many calls are trading as puts, and these at the out-of-the-money strikes we observed prior to its earnings announcement earlier this week. Two-way traffic is occurring at strikes of 85 and 90, while the 95 call strike attracted plenty of buyers at $1.05. Can Visa hit $100 in May? Traders have bet on that possibility more than 3,700 times today even though the 20-cent price of that position reflects just a 6% probability of it actually coming true
if we look at the power behind this company, it really shouldn't have a problem surpassing $100 within a month or two. then with summer vacations and traveling, there should be an uptick with card usage. and then we have the big daddy of them all... christmas shopping!!
with all of there expanding world wide, etc. aw heck! with visa, its to easy of a money maker!!!
good luck to all!
VISA!
I have been strong on Visa since its inception and was able to purchase pre-IPO @ $44.00. From the get-go I didn't pay any attention to all the negative reveiws. I just kept buying.
My question to you is, do you still think as you stated earlier, that it will pull back $3 TO $4 BUCKS in the next few days?
VISA!
I am a firm believer in owning real estate- especially if its primary (a home)- Stocks are risky in general- and V has a few more risks than more conservative stocks (pending lawsuits/a HUGE run-up already/potential regulatory changes). I think the stock has another 17$ in it- within the next quarter- BUT- if its the diff between buying a home and buying V- buy the home.
I think a lot of money is coming out of ags/metals/global markets/cash/oil- etc. - this changed the dynamics- but I would just look for an entry point that you feel comf. with-
If you can't follow the market all day- you could just put in a limit order - and hope your number comes up.
I love this company but the momentum will slow a bit- after the fed report a lot of money went the other way and back into comm/oil- so this should actually slow down the influx of new money.
I moved into Brazil this morning as the Bovespa is the second best major market this year (after the US)- and I HIT BIG. I don't like to throw out tips but some very big things happened today in the Brazil market:
SandP upgraded Brazil's credit rating to 'investment grade'-
which will pave the way for a huge influx of institutional money.
The Bovespa was up 6% today (their stock market- the biggest one in Latin America).
Here's a link to Brazilian ADRS (brazilian stocks traded in the US)- take a look at what they did today- IT WAS HUGE:
www.stocksabroad.com/m...
There are a lot of ways to play this market - one of the simplest is
EWZ (a fund of the biggest players in Brazil)
Just a piece of info- I went big this morning (prior to the announcement)- but I think Brazil has a STRONG run it it.......
My wife is Brazilian and I have spent a lot of time down there (and in surrounding countries)- and I can tell you first-hand that Brazil is about to break out-
I'm still a V fanatic- but things will slow down.
Final word- There is a $17. run until 100. If you can buy this stock - and not worry what it does day-to-day- expect 100 within 2 quarters (and with a rebound in the market (and we almost broke the 13k barrier today)- within 1 quarter........
VISA!
But, I really don't think it will go down any longer i think tomorrow will be $85 - $86.00
VISA!
I own V.
Re: down payment...I don't post but I had 2 break my habit 2 THANK YOU 4 yr honest & sincere response 2 Newbie. God bless u & good luck (although with V u don't need luck u r lucky by owning it :) ).
Re: Potential Regulatory Changes...with all due respect I think most of these regulatory changes will be aimed at the issuers not the processor (V).
Stukov
, because call options would be the only way to go...or LEAPS? I look forward to your feedback or anyone else's..thanks for your time ...cheers
1. Buy stock I believe in and maintain a core position.
2. Trade stock I believe in- and eat what I kill that day (non-core position closed out by 8pm).
I'm not the guy to talk to about options-
As far as the Mcard guy- they have far less litigation- their bottom line will most likely not be effected by any current (pending)- litigation. As far as V's litigation- they set aside 3billion already-and that should be sufficient- and if its not, they have said they could return to the market for more money. Its also important to put litigation in proper perspective- people went crazy for Walmart when the economy started slowing- and yet most people are not aware of the fact that Walmart is currently involved in 5,000 lawsuits! Lawsuits are a fact of life - especially when you are a target for parasites (I mean lawyers)- Altria, Microsoft, you name it.. V will get past all of them.
for 10 days i have i have made so much that i could not belived, i expect hit my gold by expire date but V have move faster than i thought.
just want to share , good luck
V Vinner great
Stukov
Stukov
tion
where to find??
ROI from IPO ... 89.7% in less than 2 months!
2
Anyways, I have the big moeny clearing for tomorrows trade. not sure how to divy the $10K. But I am confident that all at once would be a mistake. This stock is hot and it is a no brainer, but everythig has to slow and cool off. Right?
I have positions in a wide area, GM, INTC, F, AMR, BSC (another no brainer if you ask me) and SPAB. I love SPAB because it jumps between 50 cents and $8 almost annually. It is my HIGH Risk pick. I put a $100 in it for fun. I am interested in adding KMB, JNJ and maybe IP. I am looking for rock solid companies with killer dividends for the long haul.
have any fav. you would like to let onto ?
I am going to try to snag $2500 in V today at $85-$86... I just can't see this not going to $125 by the end of May.
Best of luck to all.
Nice......
That (ill)logic escapes me here and every time I hear or read that rcmndtn. Can anyone explain? I can see it when the pullback is far more likely to happen first.
YAHOO
YAHOO
V Winner, have a question for you what do you think is the right time to buy and what day, tentatively? Thanks
YAHOO
res
res
V stock dropped today for two bad reasons:
1. Congress approved a bill yesterday aimed at credit card ISSUERS - it will limit the amount of interest they can charge a person whose credit declines- people are mistaking V for an issuer- it is not. The new ruling will effect Discover, Amex, and Capital One- BUT NOT VISA.
2. People are reacting to guidance for the rest of this year- GUIDANCE WHICH IS THE SAME AS WAS ANNOUNCED ALREADY...what was said today was no different than what was said at the quarterly conference call.
You guys have been waiting for a pullback- this is it.....
I just bought 2000 more shares........
This pull back does not have me worried because I am long but I sure can pick the tops.;-( Glad to read V Winners comments on the new CC ruling affecting Discover, Amex and Capital One but not Visa. I am looking for Visa to reach 100 by mid summer and 125 by football season and 150 by Christmas time. MA sure has had a nice ride. Visa will too. MA was a bumpy road at first as well.
iams23@yahoo
.com
On May 02 11:11 AM looking wrote:
> I'm so mad at myself. I bought 800 shares yesterday @ $86.53, and
> the stock has been dropping ever since.
t
V Winner - How do you buy/sell the Visa Stock? Do you act like its in currency? where you see up 3% Sell X Shares and then when its down 4% you buy X Shares?
How is it working for you?
I'm from israel and it takes some time I understand until I get the purchase if I'm asking either to buy/sell.
Do you have someway to do it LIVE on the SPOT?
Thanks for your Comments!
Go Visa!
Good Luck V Winner, Love your comments / feedbacks! Please try to answer my questions :)
good luck to all!
t
How many shares of V you got? Are you also buy/sell on daily basis?
Got into Google at a key reversal and lost half my money..but it was a good trading lesson for not letting emotions move your trades, stick to your research of the companies you invest in. Recently got rid of everything else and bought Sep 75 calls @ 6.60...doubled my money so far, even with the pull back today. Intend to sit on them and not worry about the pull backs..would like to get some input on the strategy contrast of holding versus selling at the highs and re-buying the lows, considering the cost of the trade, spread points that go to the market makers, and the anxiety of attempting to catch the tops and bottoms.
Thank you V winner for the clarity and sharing of knowledge :-)
I LOVE Seeking Alpha!
t
I'd be also interested in your questions regards the sell high / re-buy low....
Thanks :-)
I don't trade on a daily basis... I don't trade at all. I buy for the long term and only sell when it's a sure dog. Most of my money is in mutual funds, but between V and XOM (got in @ 67) and a few others, the few stocks I do own are doing just fine.
Advice to all out there... Diversify. As tempting as it is to put all your eggs in one really pretty basket, it's a bad idea long-term.
Those of you that bought at 86 or higher.. don't worry. It will be back there and beyond in a relative blink of an eye.
ader
For those of you with triple digit IQs- now is a great time to buy - stock is under 83. after hours.
Today was good- the stock has been as high as 87. in the past couple of days buying on dips is essential.
I laugh when people on a stock board insult greed. I invest because of greed- "Greed is GOOD"- the people knocking this company are:
Too stupid to understand it.
or
Too broke to buy it.
or
Jelous that they don't own it.
Don't you have a little old lady to evict........
Does anyone else find it comical that someone that makes a living on other people's misfortune is complaining about greed........
t
Thanks for any kind of tips/ feedbacks!
In a Form 4 filed with the SEC, Cathy Minehan reported she bought the shares for $83.38 to $83.49 apiece on Wednesday".
VISA!
Anyone who purchased over $80 don't worry! Monday should go back to it's upward cycle. I look for close to $100.00 p/s more or less by next month. I'm finished at 1000 shares. Now it's a 2 year hold for me which should birng V to $250 p/s +-.
If in doubt, just go back and look at MA as the prime example. Visa does 3 times the transaction volume than MA, and forget about all the law suits they will all be worked out. And most of all don't listen to the bad news bears, this is a 100% winner!
Good luck to you all,
But who needs luck when U have VISA! - It's all they said it would be and more.
Stukov
i love to sell put if i belived the stock will go up, i belive in V, i sold May 17 strike price 70 and 72.5 about 45000 shares, for $5.40 each share while the stock at $68 per share
i pocket about $24000.00 and sold the right to put me at 70 and 72.5 by the expired May 17
the stock move faster than i expect so only by Apr 30, i have pocket about $22000 already, only on $30000 investment, a 73% return in 2 weeks, not bad, this is a great play
with 20000 profit when ordinary buy low and sell high you must have at least 2000 shares and the stock must move 10 up, then with V you need an investment of at least $68000 on margin, with the win of $22000 on $68000 investment that is 32% return, not bad but i like option better, good luck everyone, hope this is good help
I like that name. I like your post and hopefully it will get to $250.00 by 2 years. However one big difference between MA and V shares are the number of outstanding shares. Visa has about 5-6X (if not more) outstanding shares than MA. Although Visa is a bigger company and plans to buy back shares, along with the acquisition of Visa europe in the near future. Until all those parameters are met-- then I see Visa hitting 250+ or surpassing MA. Visa still has a long ride up and I will be enjoying every minute of it.
ood
1. V will be buying back a significant chunk of the C class shares (those held by V Europe)- this will be done in October.
2. Many of the B class shares convert at .79 to 1- (the bank shares)
3. In its conference call the CEO of V expressed interest in buying back additional V shares (above and beyond those already scheduled for conversion/buy back)- further reducing outstanding shares.
Additionally, most of the B shares (pre-ipo owners) are restricted from selling shares for 3 years- which is UNHEARD of in 99% of IPOS-giving the company ample time to resolve litigation and grow into its P/E ratio.
The discover litigation will most likely be over by the end of this year (and will be far less expensive than Amex due to the differential between Disc and Amex market share and revenue)- After that there are several 'merchant' suits- which I'm sure V will try to lump together and knock out like a Pinata.....The only other 'big' issue out there is pending regulation- and it too is being addressed. Furthermore, once V Euro deals with the EU and is brought back into the corporate structure as a full sub- this will be HUGE for V shares....
In other words, there are a lot of reasons to run V up for the next two years. I think V will continue to climb (more gradually) for the next 6 months- revenue will pick up- transaction volume will pick up- and 'issues' will be resolved. China, the Middle East, India, and the rest of the world will start to rebound (as well as the US) into next year- and take V with it. I could see V being a 250$ stock next year.
Last- don't beat yourselves up for buying high or not getting involved YET- even if you have been sitting on the fence there is much room to grow. THE BEST IS YET TO COME- trust me....
There is an old Indian saying that: 'No matter how far down the wrong road a man travels it is never too late to turn around and go the right way' If you are stuck in the fork- join us on the V PATH!
Please bear with my inexperience, but how does
1. a company buying back its stock, thereby reducing the total outstanding shares, (positively) affect the share price?
2. buying back Visa EU shares up the share price?
Lastly I am contemplating taking a loan (since int. rates are the lowest in recent history) to buy V shares. If you were 26 yrs old would you do it?