Visa Inc. (V)

MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers this, the largest of the 3. Their recent acquisition of Visa Europe is positive. MasterCard is a bit more international, but trades a little higher on a multiple basis. American Express is not a favourable one in his view.

The world is moving away from cash and cheques to electronic clearing. The only 2 networks that can do this are Visa and MasterCard (MA-N), which are global networks. The next 5 years should be wonderful.

The growth profile is fantastic. It has 10% better margins than MasterCard (MC-N). They just put in Europe, so they have a whole bunch of synergies to find there. Dividend yield of 0.6%. (Analysts’ price target is $112.)

The trend for this has been fantastic. The chart shows that it has arched off the trend line. If it pulls back to the trend line and bounces off, that is your ideal point to buy in an uptrend. He would wait to see if you could score on that trend line.

Had their quarterly report where they listed all the reasons they thought growth has just started for them, including the proliferation of emerging markets using credit cards, online shopping, innovative products and partnerships with companies like PayPal. This company keeps delivering. An expensive stock, but don’t wait for a pullback. This is the type of company that is going to grow 15%-18% a year, and will be able to do that for an extended period of time.

(Market Call Minute) They are doing fine here, but not overseas. If Alibaba gets payment then V-N gets shut out of a Billion of population. Only buy half if you were going to buy it.

The optimal time to buy is now (starting Aug 6). It has been positive for 8 years. It has done well over those 8 years they have been tracking it. We spend more going into the Christmas season. He does not expect this tendency to end any time soon. If you can pick it up a $97.50 in a pullback then great.

This has a very constructive chart. On the back of great fundamentals, this company quarter in and quarter out, produces somewhere around a 20% growth of earnings and cash flow. Very well-managed. The company doesn’t take any credit risks. That lies with the originating sponsor such as a bank. It is really a transaction company and they do a tremendous number of transactions to the point of $1.9 trillion. Acquired Visa Europe, which was a strategic and good move for them.

This has room to run. His model price is $79.53 a 20% premium over what he thinks is Fair Value. Like all strong stocks, you want to buy this on a dip.

Technicals are great. The stock has gone into all-time highs. Technically, it is in an upward trend, outperforming the market, and momentum indicators are positive. On a technical point of view, you want to stick with it. Seasonally, it reaches a very important peak around the middle of July. That hasn’t happened this year.

Great, great company. One of the central players in the electronic commerce. Purchases of anything are happening increasingly electronically, and the credit cards are right at the front of that. Great franchise and great business, but it is trading at a 52-week all-time high. Expensive.

Ecommerce. He is not sure anyone buys it for the dividend. It is a very low yielding stock. It is a growth story. It is not a cheap stock, but it looks like it will continue to grow.

They are the best positioned for on-line payments. It is only going to get higher in volume. Their return on capital since 2008 is 30% and it is not going to change. (Analysts’ target: $111.50).

It is a technology company, a toll collector within that sector. $17 Trillion turns over across the globe. It is becoming more and more ‘electronicified’. They are growing and getting more avenues of getting paid. (Analysts’ target: $105.00).

One of the best businesses in the world. A network toll road for businesses. They acquired Visa Europe and are trying very hard to get margins up to what they are in the regular business. There is still so much money being spent with cash, so the runway is very large. Has never been a cheap stock, and doesn’t think it ever will be. If you are confident in the next 3-5 years, you just buy it.