What is going on with Visa?

Question

I am getting frustrated with visa stock, it seems to be either stuck or trending downwards. I wanna whats going on? Are the financials doomed?

Answer 1

Visa has been preparing for a top since its high on May 7.  It may go up further, but I would sell it immediately, and here's why:

A. Been making lower highs since May 7, even on attempted rallies

B. Try to find a full year of earnings data for Visa (you can't), or even a reputable earnings per share (no way).

C. Try to find out exactly what is going on with their common shares (there are several classes that are or will be convertible to common shares) - the situation is cloudy at best, and makes value impossible

D. It is an IPO, so once the insider hold period expires, the stock will ride a downtrend anyway

E. Mastercard is trading at a P/E of 30.  Why?  Because it jumped over 50% since Visa's IPO, and no other reason.  Bear Market, crippled financials, and the "credit crunch" you hear about every day on CNBC?  Nonsense.

F.  Visa's IPO sold for $44 a share with the 18-month holding period.  Regulations try to give these holders a small profit, and even $60 a share is far-reaching at roughly 33%.

Lastly, people are only buying because they have a Visa card in their wallet.  There's no other reason - no value nor growth statistics, no definite number of shares outstanding, nothing.  There's better investments.  Sell it while you can.

Answer 2

They are near term overvalued, and the market is having difficulty. They will be around in the future. If you have a hard time with volatility, then I would not be investing in volatile industries.

Maybe look at the S&P500 index and hold for 10+ years. Much better strategy, diversified, historically proven index, reduced volatility compared to individual stocks.

Answer 3

Yes it is stuck in a trading range between 78-88. When it pulls down to 78-76 buy and sell up between 86-88 and back up the money truck.

http://stockcharts.com/h-sc/ui?s=v

Answer 4

I wouldn't say doomed, but just look at the overall return for this year.  And, the short term future isn't high either.  Hopefully, next year!