User 172125

Visa, MasterCard: A Chance to Profit as Markets Go Mad

Vdiddy- Here's the deal on V- There are some potential future problems- and Wez- you want balance here it is (and this is from someone that loves this stock almost as much as my wife).

But- before I start let me address the fact that I have been called a 'boiler room promoter'- (see other V posts) so I will lend you me experience:

1. 22 years in the securities business
2. I have owned one retail brokerage
3. 3 registrations with Finra (formerly NASD)
4. I own a precious and base metals investment firm
5. No securities violations (knock on wood) in 22 years
6. I have taken one company I started public
7. I started one of the first online brokerage firms
8. I work on Wall Street (literally)
9. I have structured over 25 private placements
10. I have personally raised over 100,000,000$ in private capital

Having said that- I can't understand why someone would be so offended at someone that needs to counter all of the false and misleading information being disseminated on Seeking Alpha- (other than jealousy or anger at the fact they didn't get involved in owning V)

Now, for the problems:

Problem 1. There are many, many pending lawsuits against V- some may drag out for years- others may cost a fortune.

Solution1. V has stated in its prospectus it may do a follow-on offering. In other words, should they need more money- they will go back to the till.

Problem 2. Increased regulation.

Solution 2. Yes, V may have to deal with a new set of regulatory issues BUT- so have banks, brokerages, and even Microsoft. Bottom line- is that even if they are impacted exponential global growth will cushion the blow.

Problem 3. Lock-up expiration.

Solution 3. Yes, the pre-ipo shareholders (mostly member banks) will eventually be able to sell their shares. BUT- this will be in 3 years, unlike a normal lock-up which is only 6 months AND these types of transactions will be pre-arranged 'block' sales IF the major shareholders even sell.

What so many are missing when they pick this apart and whine about how many shares are outstanding is the brilliance of the viral expansion plan V has developed. Not only are Vs major shareholders some of the biggest banks in the developed and developing world, but so are some of the pre-ipo investors. China Life and the Chinese wealth fund- have 400,000,000. invested - the Kuwait wealth fund has 800,000,000. invested. The biggest banks from Australia to America to Latin America to Asia and the Middle East are all existing shareholders. Whose card do you think they will offer- Discover? Get real. Now that China and Kuwait are players whose card do you think will get preferential treatment in the gulf and in China?

I have been all over the developing world and credit and debit cards are brand spanking new in most of these markets. Even if V gets 10% of the market of Brazil, China, India, and the rest of the developing world's market- it will triple or quadruple its user base within a decade. Conservative estimates are 10- 12% growth over the next decade year-over-year! All this with less than 5,000. employees, and minimal costs ,other than computers, terminals ,and the cost of plastic to make the card :-)

Bottom Line:

Once they get past the litigation this company is a cash cow in the true sense of the word. Look at how much money Microsoft has made over the years because of the profit involved in reselling software. Unlike Microsoft, however, V does not have to update its product ever year, hire thousands of programmers, or deal with the whole planet trying to hack it to death.

Enough said?