NYSE:V

Visa Inc. (V)

422.59
-13.98 (3.20%)
as of Nov 5, 2026, 9:00:00 pm Market Closed.
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COMMENT
Prefers MasterCard (MA-N) that has the same qualities but is a little bit cheaper.
BUY
(Market Call Minute) Default rates declining. Excess spreads coming back into the play.
BUY
For a five-year hold it is not a bad choice. One of the concerns he had when going into the recession was that the number of transactions would go down and people would be losing their credit cards.
DON'T BUY
Don’t have any credit risk. They are processors of transactions. Good company, a little too expensive. Prefers Mastercard. Multiple should come down into the teens to be a buy.
DON'T BUY
A little bit overvalued. Not a compelling opportunity.
SELL
Every time he goes to approach this company or MasterCard (MA-N), defines the valuations are too high. Trades roughly at 23X forward earnings and 50X price to cash flow. It is a tollbooth so has no credit exposure. Great business and balance sheet is fantastic. With US consumer in saving mode, the growth of the transactions will be slowed.
BUY
Very good industry. Limited competition. There is no credit risk as it is transaction oriented. As long as there is an improvement in consumption, which he expects, this company will benefit. There are also opportunities to grow in developing markets. Expanding into other things such as debit cards. On his watch list.
COMMENT
Has consistently beaten all its earnings since it has gone public. Great company. Doesn't take on any credit risks, as it is transaction driven. Has a tail wind as people are giving up cash for plastic globally. Trades at about 21X earnings. Prefers MasterCard (MA-N) which is cheaper at about 15X 09 earnings.
COMMENT
Had a multiple of 35 PE, dropped to 30 and is now in the low 20's. Starting to get very interesting. Because it is a growth stock he can't own it. Still too big a multiple to him, but getting close.
DON'T BUY
Has no exposure to credit card companies. There is a case to be made for global growth with either Visa (V-N) or American Express (AXP-N) but with savings rates rising, there could be a bit of a challenge from an earnings standpoint. Would prefer asset managers that could participate from a fee standpoint, or a custodian such as State Street (STT-N).
DON'T BUY
Visa (V-N) and MasterCard (MA-N) make money on fees they charge merchants. (Also have debit cards in Europe and US but not in Canada.) Transaction oriented companies, so if you think retail sales are going to pick up then you will want to own but if the consumer is tapped out and trying to get out of debt (which he thinks) then you don't want to be there right now. His preference would be towards Visa because of its stronger international name.
COMMENT
Between Visa (V-N) and MasterCard (MA-N), MasterCard is the cheaper of the stocks from a valuation standpoint. Both of these companies are in the right spot. There will be a huge increase in the use of debit cards and both companies have a huge position in this area.
BUY
There is global upside in transaction values. If someone does not make good on their credit card, it is not this company that gets hit, but the bank.
COMMENT
Doesn't have a firm opinion on this one but companies exposed to small and mid-ticket items will fare better than large ticket items.
BUY
Is a credit card company but don’t make loans – they are a network system. Visa and MC are great companies. Visa is more attractive.
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