SoCalsurfbum

Four Key Points from Visa's FQ109 Conference Call

Just because every one agrees with you on how great the Visa business model is does not mean it is a good investment. Everyone gets it...

But at the current price, get real. Visa is a mature business in a well developed market, yet current pricing is assuming they will increase the size of the company by 4-5 times (which is what they will need to do to justify this price). Looks like Google at $700 to me.

Their big growth push is in $3 transactions? You need 10 of these to match one $30 purchase. How much of a boost can this possibly give to earnings? Their marketing costs vs. earnings on these low-end transactions can not be anywhere as profitable as their traditional business.