Mastercard vs. Visa He owns neither, though they have performed incredibly well. Don't buy them now in this part of the cycle. He likes American Express for its much-lower valuation, and have performed well, too, but buy that only on a big pullback.
Mastercard vs. Visa He owns neither, though they have performed incredibly well. Don't buy them now in this part of the cycle. He likes American Express for its much-lower valuation, and have performed well, too, but buy that only on a big pullback.
AXP vs. V vs. MA. Wouldn't touch Visa or Mastercard, because they're extremely expensive, unless they have a 50% pullback. But AXP is a whole lot cheaper on price to book. It's the only one with visible upside. But it's bang up against technical resistance at 3.5x book. Hasn't been able to get any further. Visa and Mastercard are a lot more profitable than AXP. AXP has more limited downside.
AXP vs. V vs. MA. Wouldn't touch Visa or Mastercard, because they're extremely expensive, unless they have a 50% pullback. But AXP is a whole lot cheaper on price to book. It's the only one with visible upside. But it's bang up against technical resistance at 3.5x book. Hasn't been able to get any further. Visa and Mastercard are a lot more profitable than AXP. AXP has more limited downside.
AmEx, Visa or Mastercard? They're all great. Visa and MC are pure-play payment processors vs. AmEx which is also the issuing bank. They play on electronic payments with people buying more and more online, but V and MC reaches a wider breadth of customers/users. AmEx still focuses on richer people. V and MC will always have a higher multiple because they're viewed as tech companies. They're all great holds for 5-10 years.
AmEx, Visa or Mastercard? They're all great. Visa and MC are pure-play payment processors vs. AmEx which is also the issuing bank. They play on electronic payments with people buying more and more online, but V and MC reaches a wider breadth of customers/users. AmEx still focuses on richer people. V and MC will always have a higher multiple because they're viewed as tech companies. They're all great holds for 5-10 years.
Stock is overvalued right now. It is trading at excessive values now. Starting to see some credit concerns creep in. Be prepared for some volatility.
Stock is overvalued right now. It is trading at excessive values now. Starting to see some credit concerns creep in. Be prepared for some volatility.
It has 13x forward earnings with a 12% growth rate as global consumer spending rises. Digital currency is overtaking cash and cheques as a strong trend. Worldwide, people still use cash over plastic, but this will change--and AmEx will benefit. Last week, they announced a co-branded card with Amazon and $3.4-billion buyback program. He's held this for a long time. (Analysts' price target: $109.27)
It has 13x forward earnings with a 12% growth rate as global consumer spending rises. Digital currency is overtaking cash and cheques as a strong trend. Worldwide, people still use cash over plastic, but this will change--and AmEx will benefit. Last week, they announced a co-branded card with Amazon and $3.4-billion buyback program. He's held this for a long time. (Analysts' price target: $109.27)
Should I buy American Express (AXP-N) or VISA (V-N)? It is like asking if I should buy an ice-cream for my daughter or my son. Ownes both. Basically, toll booth for global spending. There is still more cash out there than plastic out there believe it or not. American Express (AXP-N) seems a little cheaper from a valuation stand point. Amex is a little more value oriented, VISA is a little more growth oriented. Keep both.
Should I buy American Express (AXP-N) or VISA (V-N)? It is like asking if I should buy an ice-cream for my daughter or my son. Ownes both. Basically, toll booth for global spending. There is still more cash out there than plastic out there believe it or not. American Express (AXP-N) seems a little cheaper from a valuation stand point. Amex is a little more value oriented, VISA is a little more growth oriented. Keep both.
(A Top Pick Aug 26/16. Up 44%.) Still likes this. It just hit new highs yesterday. Trading at about 15X forward earnings with a 10% growth rate, giving it a 1.5X PEG ratio. 1.5% dividend yield will grow at about 10% a year. They are aiming to lower their profits and rates to entice more merchants to accept its cards, by 2019. Thinks it will continue to do very well, particularly with interest rates moving higher and a possible tax reform.
(A Top Pick Aug 26/16. Up 44%.) Still likes this. It just hit new highs yesterday. Trading at about 15X forward earnings with a 10% growth rate, giving it a 1.5X PEG ratio. 1.5% dividend yield will grow at about 10% a year. They are aiming to lower their profits and rates to entice more merchants to accept its cards, by 2019. Thinks it will continue to do very well, particularly with interest rates moving higher and a possible tax reform.
MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers Visa, the largest of the 3. This one is not a favourable one in his view.
MasterCard (MA-N), Visa (V-N) or American Express (AXP-N)? Of the 3, he prefers Visa, the largest of the 3. This one is not a favourable one in his view.
They lost Costco, which one of their biggest accounts. Once they focus back on their premium products we can see growth. The stock is beaten up after a difficult 2016. She thinks this will be a turn-around story.
They lost Costco, which one of their biggest accounts. Once they focus back on their premium products we can see growth. The stock is beaten up after a difficult 2016. She thinks this will be a turn-around story.
This continues to focus on the lending side of its business, and they are doing a lot of cost cutting initiatives which is going to help shares move higher. Technically, it recently broke its 200 day moving average on the upside, which is very bullish. It has formed a solid recovery from its lows earlier this year. Fundamentally it is reasonably valued, trading at about 12X forward earnings, with an estimated growth rate of 8%-10% in terms of earnings per share. Over the last 5 years, it has delivered an annual dividend growth rate of over 10%, and going forward he expects it to be 8%-9%. Dividend yield of 1.79%.
This continues to focus on the lending side of its business, and they are doing a lot of cost cutting initiatives which is going to help shares move higher. Technically, it recently broke its 200 day moving average on the upside, which is very bullish. It has formed a solid recovery from its lows earlier this year. Fundamentally it is reasonably valued, trading at about 12X forward earnings, with an estimated growth rate of 8%-10% in terms of earnings per share. Over the last 5 years, it has delivered an annual dividend growth rate of over 10%, and going forward he expects it to be 8%-9%. Dividend yield of 1.79%.
Got Stopped out of this about a year ago. Felt that the brand was getting a little bit tarnished when Costco (COST-Q) walked away. He would prefer Visa (V-N) instead. They are reporting shortly and he would wait to see how they have done.
Got Stopped out of this about a year ago. Felt that the brand was getting a little bit tarnished when Costco (COST-Q) walked away. He would prefer Visa (V-N) instead. They are reporting shortly and he would wait to see how they have done.
