Visa Inc. (V)

Just acquired Visa Europe. This will be accretive to earnings in a couple of years. He really likes the story from a longer-term perspective, because you are going to see an acceleration of mobile payment penetration in North America and abroad, but starting with the US, where the point-of-sale systems are going to get upgraded next year. There will also be a tremendous amount of growth in emerging markets as they move from cash to credit or debit cards. Thinks you will see double digit EPS growth longer-term. Very reasonable valuation. A good, long term hold. Dividend yield of 0.72%.

Clearly this is getting a premium valuation. Doesn’t know how well they are positioned in a mobile payments world when you are starting to get the PayPal’s and the Apple Pay of the world coming up on the electronic payments side. Trading at a 25+ multiple gives additional worries. He wouldn’t own this. Doesn’t know why it has such a high multiple.

(Market Call Minute) Looks very attractive.

He likes this, but owns MasterCard (MC-N) currently. This company is on track and doing pretty much the same thing in terms of performance. MasterCard is a little bit more internationally based in terms of their revenues and where they’re coming from and their expansion opportunities. The fact that we are moving away from cash and into electronic payments makes a lot of sense.

The news about buying Visa Europe was out about a month ago and the stock had a little pop. It will probably be very accretive. The multiple is getting rich, but the company continues to grow. The world is its customer. Use of electronic banking and transactions is only going to grow.

Financial technology. They enable transactions. This and MasterCard are both behaving quite well. They pulled back in the correction, but the trend is not broken. He considered it for a top pick today.

A premier quality company. Has terrific growth. Very high margin business. However, it has a high multiple in the mid-to high 20s. A great company, but too expensive. He would be taking a hard look at American Express (AXP-N) instead.

This has been one of his top 10 names in his Global Growth fund. It is as pure a play on consumer globally as you can find, with the exception of Europe. Buying Visa Europe is expected to happen over the next 12 months. They are going to pay a pretty good multiple for it, but believes it will be accretive for the shareholders.

Disney (DIS-N) or Visa (V-N) for a new grandson? This is going to be a great long-term hold. The chart shows it is an example of a type of name that he loves and is attracted to. However, he would choose Disney in this case.

It is a play on the transition to electronic payments. There is potential in developed and developing markets. They are the largest provider so have the lowest cost base. With the US dollar strengthening, she thinks earnings will stay relatively strong. This stock will stay relatively strong despite currency. This is an attractive entry point.

Everybody is using credit cards and shopping is going mobile. You can’t pay for your online shopping with cash. Stock has popped recently because there is an opportunity for it to acquire VisaEurope. Beautiful balance sheet. Valuation is expensive, but they just compound capital. There is still more runway to grow its business. Dividend yield of 0.7%.

A very fast growing company and a very simple business model. They process transactions and the sponsoring bank takes on any credit risks. Transactions are increasing at a very rapid rate. About 55% of their business is now done internationally, and about 60% of their business is debit cards. With the correction, they are down to about 20X earnings, and it is an excellent time to make an investment in this company.

He doesn't hold Visa, but has MasterCard on their focus list. Visa is a great company. They have a business model that makes sense. It is a solid volume business model. They have a strong management. They are good with the buy back and the dividend. This will continue to be a strong secular grower. He likes both MasterCard and Visa.

North America has been the lead in the declining use of cash and well ahead of other geographies, especially China and emerging markets. We are still in the early days, and there is still a significant transformation to take place. This company stands to benefit. The chart is basically straight up and on a valuation basis you have to scratch your head and ask how much of that is priced in. He feels there is still a lot of upside, but you have to be willing to accept some volatility. You can buy in and then buy more on weakness, or wait to step in on weakness, but the risk is that you are going to continue to miss upside.

There are high expectations for retail throughout this year due to low commodity pressures, giving a low cost of gasoline. We are approaching a period when retail stocks/consumer discretionary in general tend to do well from October through to December. Technically the stock broke out above resistance which should now act as support.