Visa Inc. (V)

An incredible story. A tollbooth in the credit card industry. Have no credit risks. Hard to buy it at this price.

Has had a terrific run. If he is correct about the US economy growing, that means more transactions and this company will make more money. The new technology, where you can use your smart phone, presents both challenges and risks for credit card companies. Feels the banks are going to find ways to bring that business in-house and separate from Visa and MasterCard (MC-N) and try to capture those transactions for themselves.

One of the greatest companies in the world. No one can break into this. All the banks take on the credit risk. He can’t buy it because of the crazy multiple. It will continue to benefit.

All the market will go into Visa or Mastercard. His concern on both is that they are pricy. $110 model price on Visa, -10%. On any model price, look for $128. That is where he would enter it.

It is not trading at an excessive multiple. Credit cards are becoming a bigger and bigger part of their lives. Some growth internationally and in North America. Buy it on a pullback. Regulatory issues regarding charges are not going to be as bad next year.

(Market Call Minute.) Likes both this and MasterCard (MC-N).

Quite an exceptional story. Every time he is interested in buying on a pull back, it doesn’t pull back. No credit risks. In effect it is a tollbooth in credit cards. Have lots of chances to grow internationally.

(Market Call Minute) Wrong part of cycle.

(A Top Pick Oct 24/11. Up 46.96%.)

Both Visa (V-N) and MasterCard (MA-N) are terrific in terms of their dominance. We are moving towards a more credit card oriented society. 20X earnings and a limited dividend keeps him on the sidelines for both of these stocks.

You have to love this space because they take almost no risk. Thinks consumer deleveraging will have an impact on earnings. Right now there is a powerful trend on this stock. Look for a pullback to buy. It is a little over bought.

Was down and trading in the low teens multiple because of the Durban proposal that would inhibit their debit card business. It is now back to the multiple it deserves given their growth rate. Fairly valued at this price. You are going to rely on organic growth of around 20% a year for your stock appreciation but you shouldn’t expect any upward revision of the multiple that there has been in the past.

In a particularly good position to benefit from the “electronic” wallet that is coming. They have global growth on their side. Should be a pretty steady performer.