Should I sell my Visa stock?

Question

I bought Visa for $89.06 a share and have took a big loss.Should I sell and take a loss or will it eventually go back up?

Answer 1

If it were me, I would sell.  Check different sites and sources for their earnings and financial data, and you will find nothing (no P/E ratio either, naturally).  If you look at different financial sites, you will see several different figures for shares outstanding (there are several classes of shares that are convertible into common shares).  In conclusion, Visa is being bought by investors who don't know anything about the stock market and valuation, and it's impossible to actually analyze the stock (at least by private investors).

Anyway, if you turn on CNBC it's all about the "credit crunch."  Then why is Mastercard and all the other stocks up that past few months too?  It's because Visa's IPO induced a rally, and there is no basis for it.

Visa has not even gotten close to hitting the peak you bought it at, and has been making lower highs.  There are better investments for your money.  If Visa's earnings come out to the public, and you like what you see, you can always buy it back again.

Good luck.

Answer 2

I think it will go back up.

If you sell it for a big loss, where will you put that money to make back what you lost?

Buy more V to cost average down if you believe in the company as I do.

Or buy calls in the company if you want to leverage your money to get the biggest gain while waiting for the stock to go back up.

Answer 3

Well here is the 52 price range for Visa:  55.00 - 89.84. So, you bought high.  

But, no I don't think you should sell it.  Visa is a rock solid company.  Contrary to belief, VISA does not issue credit, they only process transactions.  The more transactions the more money they make.  The use of debit and credit cards is going up and will continue to as other countries become more wealthy (China etc..)

Answer 4

If you are investing for long term goals, keep it. It will eventually go up & possibly split also.

In the next 5 years (per annum)  it's estimated to go up 21.56% .

Answer 5

Here's a "rule" I always have for myself;

Always have an "exit" strategy before you buy. At that time you can determine your time horizon for the stock and the most you're willing to lose.  The "stop" should be based on a good point on a chart (based on your goals).

Without knowing your "time horizon" on this position, the percentage of your overall portfolio etc..... No one can assist you.

BTW:  You may also want to learn about "position sizing"..... it will be of great help to you.

Answer 6

That was a bad move. Keep it now it will go up in some years, but you bought it at a premium. Might as well just keep it now.