1. 

   sl

   03/19/2008 12:43 pm

   Visa is already really well established. How are they going to increase earnings? Note, I’m not a professional.

   Should be interesting to see how the stock performs, hopefully it goes up

2. 

   David Pitlyuk

   03/19/2008 1:00 pm

   @sl: Check out this quote:

   Analysts also say that Visa is on solid financial footing and has what it takes to deliver steady earnings growth. Even though a quarter of its revenues come from only five banks that could at any time terminate their relationship with the card issuer, Visa is still the number one brand in credit cards. It commands more market share than MasterCard, American Express (AXP, Fortune 500) and Discover Financial Services (DFS) combined. It is growing at about 11% a year, and should see 18% growth outside of the United States through 2012.

   In short, it is the type of company that should be a dependable long-term investment.

   From this article on CNN Money.

3. 

   CG

   03/19/2008 1:57 pm

   Considering the long term potential, I estimate this stock is work $90 in this fiscal year. Visa has a lot of potential with centralized operation and good cashflow.

4. 

   Jeff Gavin

   03/19/2008 5:30 pm

   Agreed with SL. They’ve saturated the market. What’s more, read this interesting post by Adam Letvin on how the IPO amounts to an elaborate scheme to avoid antitrust liability in the banks/credit card associations’ ongoing battle with merchant groups over interchange fees.

   I see a lot of hype and then the reality, and as Letvin writes, a massive shakeup in payment cards in the next few years.

Add A Comment

Note: We use Gravatars, they are little icons that appear next to your name on this site and on many others. You can get a Gravatar account for free and any other site that supports it will show your avatar too!

Trackbacks

1. Good Start For Visa IPO So Far | David Pitlyuk