VISA (V) and IPI?

Question

what is going on today with visa? and now IPI is up am so mad at myself coz i dont own it. Please tell me why is Visa down

Answer 1

What the **** are you talking about?  I thought they were going to be down a ton but it turns out they are not too far away from their 52 week high.  This is the normal motion of the market, buddy.  Things go up and down for no reason at all.  When they report, depending on how investors take the news, they might stay up or down longer.

As far as V, this is a perfect example of why buying into a hyped up company IPO is a bad idea.  They always rapidly increase and then slowly decline over time until it falls to its true value.  What is the true value?  Who knows!  They don't have a lot of financials you can look at.

Answer 2

IPI is up because Mosaic is now rated as investment grade and price targets for Mosaic and Potash have been raised.  These revisions suggest that all potash fertilizer companies will benefit from high food costs.  Fertilizers are coming off of a steep (~20%) price correction.  So the price swings aren't for the faint of heart.

V is in good shape right now.  The IPO priced at $44 and it's trading above $80 after flirting with a $88 price ceiling.  So no worries here.  Independent analysts are valuing VISA between $70-$80.  Uncertainty in the markets will affect stock prices.  V and MA make their money on transaction fees.  If people shop less (i.e. use the credit cards less), then revenue suffers.  So a recession may very well pull down credit card stocks.  The markets will need some good news to push V higher.  Otherwise, the current price is reasonable.