Visa Inc. (V)

On her watch list. Hasn’t bought it yet because of valuation. Trades at a pretty high multiple. In an attractive position in the global economy. Target price of about $200.

A company that is benefiting from a good long term secular trend. Huge growth in e-Commerce. Perfectly positioned. Growing earnings at over 20% per year.

In Australia retailers charge 1.5%-2% if you use a credit card, so there is some backlash coming down the pipe. This company is not taking advantage of what is going to be the future, of people just paying off their cell phone. There could be some hiccups. Right now MasterCard (MA-N) is the better valuation but is awfully expensive.

This type of stocks you buy on dips. His model price is $140.87 so it is a negative 20%-22%.

Visa (V-N) or MasterCard (MC-N) and what would be a true market value for Visa? Don’t look at the price of the stock, look at the valuation. Price doesn’t matter, it’s all about value. Feels both are priced to perfection. They are wonderful monopolies, with much more growth to happen, especially in emerging markets and he would buy them in a heartbeat if they fell 25%. At 20X earnings, you are paying way too much.

Government is dictating how much they can charge on some debit charges so the stock took a drop. She sees a lot of downside risks, as both this and MasterCard (MC-N) are trading at over 20X earnings. Both are trading at 60% operating margins.

Great company. At the moment, MasterCard (MA-N) is a little bit cheaper on valuation. Both stocks have continued to set new highs and still have lots of growth ahead of them. Although valuation is getting a little rich, you could start nibbling here. He prefers MasterCard a little more at this time because of valuation.

Trading at about 20X earnings. This is really an earnings story. Growing their earnings in the high teens. If you have a company that is growing its earnings at 20%, the stock price can grow at 20% and the multiple doesn’t change.

Great business but not a cheap stock. More ecommerce. Looking at paper vs. credit card, people are using less and less paper currency.

Really a tollbooth. Has no credit issues. The more people that use their services the more they get paid. There is certainly a larger growth of people using plastic cards globally.

Carries balance sheet risk. A toll-gate. Best of breed. You could buy it now and he likes it long term.

Great, strong secular trend towards electronic payments, both debit and credit. They don’t have credit risks; it’s the banks that take all the credit risks. They just charge a fee to process the transaction. Dividend yield of 0.79%.

Great franchise. Infrastructure. Huge barriers to entry. Phenomenal growth. It comes down to valuation. She does not want to pay 25x plus. She thinks you can get better opportunities.

(Market Call Minute.) One of the fastest growing financial services you can invest in. No balance sheet problems that you see in others.

(A Top Pick March 14/12. Up 37.78%.) This has more of an exposure to debit cards then MasterCard (MC-N).