Visa Inc. (V)

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).

Has done extremely well on the back of the paperless/non-currency society. Growing very strong in their debit card business right now and makes up about 60% of their total business. Not cheap but he would buy it and just ride the organic growth, which is around 20%.

Credit card companies are delivering exceptionally well. If you want a play on the global economy, there is no better play than the credit card companies.

Great business and benefiting from the overall pickup in the US and global economy. More importantly, the huge increase we are seeing in online shopping with people using credit cards is a huge benefit for them. Not cheap. Trading at 2X earnings.

Likes everything about the story except the price. This says something about the underlying strength of the global consumer. Expects that over time this will gradually move higher. Wait for a dip but that may not happen and you may just have to hold your nose and Buy.

Looked at this along with MasterCard (MA-N) and American Express (AXP-N). Of the 3, as a potential purchase, he chose American Express which has good growth. All 3 companies will do well in this better US economy. Wasn’t prepared to pay the P/E ratio on Visa. If you are a trader, he would suggest perhaps taking half off the table and switching to American Express.