InvestBaboo

Visa: Not Everywhere I Want to Be

In my prior post above I gave a target of mid 60's to Visa based on chart reads completely discounting the ramblings of this author. How did I do that? The charts told me. As I have said a thousand times on SeekingAlpha -- the charts tell us what people are doing not what they they will do.

Visa's high was $68 today. Close was 64 and change.

Visa: Not Everywhere I Want to Be

Sorry author Dude.

V has registered a strong BUY signal on the charts.

Entry level = Current Price ($59.13 today's closing price)
Stop Loss = 54
Price Target - Mid 60's

Watch this unfold.

Credit Card Breakdown: AmEx Disappoints, as Predicted

I am not worried about MA beating the results handily.

I am worried about what they will say on a going-forward basis. Just a couple of months back MA management came out and took the highest analysts eps number and called it low and increased guidance! The stock shot to 300+ and the shorties came out driving it to current levels. The shorties don't believe that MA growth can be sustained and that the macroeconomic environment will eventually start affecting them.

As pointed out in above posts there is a fundamental lack of understanding of the dynamism of developing countries where the populations largely operate using cash and the massive switch that is happening to MA and Visa issued plastic. So even with a cloudy macroeconomic situation one would argue that more and more cards are being issues in these developing countries and more and more transactions are moving to plastic from cash.

Comments welcome!