MasterCard (MA) and Visa (V) shareholders can look forward to higher capital returns over the...


MasterCard (MA) and Visa (V) shareholders can look forward to higher capital returns over the next three years, J.P. Morgan's Tien-tsin Huang forecasts. With relatively low capex needs and few large acquisition candidates, the analyst thinks MA and V can return the majority of profits to shareholders while still investing for future growth, noting each have ~$5B in unrestricted cash on hand.

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Comments (4)
  • thesoulofashark.com
    , contributor
    Comments (22) | Send Message
     
    I don't see how you can be bearish on this industry.
    1 Oct 2012, 04:45 PM Reply Like
  • chopchop0
    , contributor
    Comments (4699) | Send Message
     
    Yup. They both eeked out yet another all-time high today. V above 138, MA above 473. Long both to infinity!
    3 Oct 2012, 04:06 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1110) | Send Message
     
    I like the industry but my question is what is a good forward P/E for Visa?

     

    I think the buy/trim range should be 17.5x/20.0x and right now it's 19.5x ($140/sh) so it's a little too high to buy now IMHO.
    6 Oct 2012, 03:37 PM Reply Like
  • chopchop0
    , contributor
    Comments (4699) | Send Message
     
    Cramer just pumped both MA and V big on mad money today as two of his 4Q growth picks. Makes me nervous now. They do have high P/E's but this is accompanied by projected double-digit growth
    9 Oct 2012, 10:51 PM Reply Like
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