Visa stock... buy in now?

Question

I'm somewhat new to investing, 19 years old but really into it. I have about 3k that I want to invest and have been back and forth between MSFT, WM, and AAPL but now I'm really thinking about going with V. Since Mastercard's IPO they have been on a crazy rollercoaster ride from 80 to 300. Just wondering you guy's thoughts if Visa could do the same. They have been on nonstop ride up as well with very much potential as Visa is bigger than Mastercard and given the economy does not shoot down. Thoughts?? Thanks!

Answer 1

You cannot just look at the price of Visa and think its cheap on 80 vs 300 basis.

Answer 2

V has a fwd PE of 34.47

http://finance.yahoo.com/q/ks?s=V

MA's is 28.02

http://finance.yahoo.com/q/ks?s=MA

I think they are both near term overvalued.

Answer 3

Definitely no for Visa.  Its stock is going up because individual investors have no idea what it's worth.  Because it's an IPO, there are no annual earnings, no public financial statements, no P/E, no nothing.  Another problem: nobody even knows the market cap or total numbers of shares outstanding!!!  Visit several different financial sites, and you will see that many of them list wide differences of shares and market cap (it's actually one of my previous questions if you want to search for it here).  The problem is that there are three different kinds of shares, with the outside two eventually being convertible to common shares, which will all be sold on the market.  I am 18, and have been in the market about two hours a day for 5 months.  Note that simple prices are not worth anything.  The true indicators of value are in market cap and how those relate to earnings.  Do your research, and email me if you have any questions.  Also, I made this site as a collection of learning resources.  http://www.stockmarketresources.blogspot... .  I'm planning on improving it in the next week or so as well, but I believe you will find it quite helpful, especially the investopedia and thismatter links.  Good luck.

Answer 4

You could get in V, just look for a good entry point; it has more upside in the horizon.  Preferably I will advice you to get MA because V seems to be expensive compare to MA.