Adesai

Does Visa's Beat Bode Well for MasterCard?

Trader Mark,

hey whats up???? I remember your articles on IPI.

Anyways, there are a number of reasons why V is trading at a higher PE ratio than MA.

1. Size, size, size- due to global market share: V-60-66% while MA 25-30%. This makes a huge difference when competing for banks in emerging countries such as china and india.
2. Veurope- Veurope has not joined V inc., and Veurope represents about 15-20% of market share. Veurope shares will be bought by Vinc in the near future. Currently your seeing Visa without Veurope's earnings
3. Huge banks/ institutional investment. If you look at banks in china, india, brazil, middle-east they have invested alot of money in V shares, which means they will likely be caring there card.

4. Legal suits. While you just saw what happened to MA shares today b/c of Amex suit, Visa has already settled before they went IPO. Additionally V has set aside 3 billion of IPO money for Discover cards pending law suit while MA has not..... MA will likely see the same tumble is shares prices/net quarterly loss when they settle with discover.

5. Planned by-back of shares. V will likely buy back shares in 1st quarter of 2009, which will effectively lower outstanding shares, increase EPS and effectively decrease PE ratio.


These are the reasons i am aware of.

I guess you got what you wanted....you wanted MA to miss to drop in share prices. Well here you are, but be careful what you wish for.

Credit Card Breakdown: AmEx Disappoints, as Predicted

Mojo is an idiot, its clear he loss some $$$ in Amex and DFS.

Have you seen MA chart for the last 2-3 years. Its on a steep incline.... WHY???? MA and V is targeting developing countries. In china 1 in 30 owns a cc; in india its about 1 in 60. These are huge potential markets. Global trend from cash to credit is occuring at a exponential rate. With the summer olympics along with huge chinese/ indian/ middle eastern banks investment in V, look for about 10-15% increase in credit card transaction year on year, which is what CEO saunders has predicted. Suntrust has a price target of $100 which is what V willl likely be trading at within several months.

Amx and DFS will likely be bankrupt or be in the red within several years.

Why American Express Should Be Ignored

I enjoyed this article and you made a great point Fxtrader. However with Visa being traded at 72 currently this stock has taken a beating. Suntrust has projected price target of 100, and there is no reason to believe Visa cant hit that with the upcomming olympics, growth potential in asia, buying visa europes, and buy back of shares. Visa is expecting 20% growth year after year.

Remember that before the first quarter earnings Visa was at prices of 73-75, after the earnings release the stock jumped to 80+. With second quarter earnings comming up look for the same trend. Visa and MA are being traded at high PE ratio compared to other credit cards, which is justified b/c of the limited or no exposure to consumer debt. While AXP and Discover will likely fall victim, as have banks recently, to the badd economy. The price of V has taken a beating because of lower expectations from the financial crisis, however once earnings release watch this baby sky rocket.

Visa Estimates Upped Through 2010

I really enjoy your post greencap. You seem to give a balanced view of this company.

And your right...numbers dont lie. V has a high current and forward PE ratio compared to MA. However, I have invested in Visa b/c of the growth potential, worldwide name recognition, the guidance of future growth of this company, guidance of buying Veurope in several months, along with the growth potential in china. Additionally this is a comapny i can relate to b/c i use visa credit cards more than i use cash. Just to keep records of all my purshases without holding on to reciepts. More banks and institution from asia (china, india), middle east, etc..etc.. have invested in this company compared to MA... which tells me that this will be the premier card which will be advertised when people go to banks to get debit/credit card in these developing countries. Although in the short term MA may look good b/c of its PE ratio and EPS....in the long run (3+ years) visa is the much better company. And I am in it for the long run...

In fact even in the short run i have made about 30-40% return on this investment in today's bleak economy...which is something i dont think anybody will complain about.

Visa Estimates Upped Through 2010

I believe all these comments about other people what they did...what they didnt do is all Bullshit. I have joined this forum and Visa Winners forum for 1 reason and only 1 reason. To learn about the company visa inc and make an informed decision, about investing. I am an physician and dont have much time to pick up and read every single detailed story about visa.... which is the why i have joined this forum to get insight. I think that is the reason why we all came here in the first place. I have learned alot in the last 2 months about this company and its guidance through this and other forums. However all this extra crap is childish. LETS ALL REMEMBER THE REASON WHY WE ALL JOINED..... TO INVEST and LEARN not to make enemies or friends. At the end of the day in about 2-3 years from now when we all triple or quadruple our invest that is all that is going to matter.

Visa Estimates Upped Through 2010

I tried to go on the Visa Winners blog and read the reason why it went down. What really happened?????

Visa Estimates Upped Through 2010

With the buying of Veurope and conversion of class C to B. I think the projected price of V is well above the $100 that suntrust placed. I believe the price should hit $130-145 within 1-2 years. There is no reason to believe it will not reach that target.

Visa Estimates Upped Through 2010

People dont seem to realize that although V europe is not part of V inc. It will be....soon. So those of you questioning why Visa is trading at much higher PE ratio than MA....and why Suntrust has raised its price target:

From the conference call from Saunders (CEO of Visa) he claimed that V europe shares will be bought out by V inc in october. After which V inc will convert Class C shares to Class B shares at a 1 to .77 ratio (i believe that is the correct ratio), which willl effectively decrease the total # of outstanding shares. These 2 events will effectively increase the value and EPS for each individual Visa shares.

Many analyst have given projected price for Visa from $75-100. I think this huge range is due to incomplete facts of the guidance of this company. I believe the projected price of $100 is conservative b/c of the 2 events mentioned above. If the 2 events (buying V europe and conversion of class c to b shares at 1 to.77 ratio) were NOT to happen then i believe this is highly overvalued stock compared to MA.

Visa Keeps Charging Ahead

First realistic and fair post from SeekingAlpha. Other articles from SA have bashed Visa, and the only thing Visa did was grow more than 45% since then.

I agree with this post. The forward guidance of Visa is much stronger than that of MA. Visa CURRENTLY is toe to toe with MA and this is without Visa Europe in the mix. Once V europe joins V INC the disparity will be huge. Visa will outshine and outperform MA in every instance. Because Visa had subsidiary (Vcanada, Vasia, Vafrica, Veurope, etc...) I believe they have more of a local/domestic presence which allow more growth potential than MA. Additionally, The upcomming olympics along with the growth potential in Asia (china, india, etc) with major internatinal banks investing milllions of $$$$ in Visa INC, the growth potential is huge and will out-shadow MA in the long run.

This is one of the most recognized brands in the world. Think about it.... If you go anywhere in the world and ask a regular person on the street what brand they recognize Visa or say Apple, Dell, Exxon, etc..etc.. I guarantee people will say Visa. With the trend going from cash to credit/debit, I cannot think of another company that has better growth potential in the next 10 years than Visa.

Even at this price Visa is cheap right now. For instance, when you go to a fair or amusement park and your standing in line everything looks big... but once your on the ride and it takes you to the top everything looks small/ tiny below. MEANING: Once this stock is at $150-200, your not going to care whether you bought it at $75 or $84, all you care is that your on the ride and its at $150.

Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry

Even though this is a Visa post...whats going on with the Agric. sector.. IPI and the rest of the potash stocks have seen a beating recently

Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry

YOur right greencapitalitst,

MA does have potential that is in major part due to the # of shares offered in addition to the fundamentals of Mastercard. In terms of size, Visa is the "mircosoft" and Mastercard is the "apple" in the credit card industry. They both are great but I still believe that Visa with its shear market size and its subsidiary: Visa-asia, Visa-canada, etc. which has now been incorporated into 1 has more of a regional presence and better growth potential than MA will... And with the acquisition of Visa-europe in a few years I believe this stock can be in the $150-200 within 2 years.

Visa did rebound from yesterday drop off in after-market trading. Its trading at $77.85. With the olympcs around the corner and visa sponsorship I see the potential of Visa in Asia to be huge and propel this Visa stock right to the top. I believe Visa will be in 80-85 range in about 1 month (if not several weeks)

Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry

we should move our blogs to the IPI article on seekingalpha seekingalpha.com/artic...

you guys gotta read this bullshit article

Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry

Winner V,

Im on-board with you brother. I believe V will be more than 150+ in 2-3 years.. Especially with the growth in Aisa and brand name recognition. I beleive of all the companies that are sponsoring the summer olympics in China i think Visa has the most to gain b/c of the growth of credit card usage in India and China... Lastly but not least when you have Insiders in the company buying shit loads of Visa stock you know there is something good going on.....I believe this stock will pay for a ferrari or lamborghini or possibly even both....haha

As far as IPI i heard about this stock on AOL.com finance that claimed that this is the hottest stock of the year (even above V)... It claimed that IPI might be the hottest stock to come out since Google and it should see heights of $100+ within this year b/c of the low floating shares in addition to the price of potash and the low supply to demand ratio. One concern I have is the global market share that IPI has which is about 1.5% which i hope they will increase with the continued increase demand... I heard the 35 min presentation done by the CEO of IPI on the website retailroadshow.com/ind... which is a presentation by the executives of the issuing company of all IPO to investors.. the video is probably not there any more as they rid of it once it goes public...Anyways it was informative and i was convinced of there growth potential.


Im banking on these 2 stocks....My theory is: find several hott stocks and put all your eggs in that basket...why take the risk investing in 15-20 stocks when you can invest in 2-3 that you "KNOW" are going to the top.

Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry

You guys gotta read the article on IPI on seeking alpha that claims "potash is a bubble ready to burst".....seeking alpha is bashing IPI just as it bashed V....

Visa and Mastercard: The Mortgage Brokers of the Credit Card Industry

Thanks for the recommendations greencapitalist