V - Visa Inc - Page 64

70

Due for a bounce here when compared to similar companies...

Edit: RedStick did a little chart action here: http://www.hotstockmarket.com/forums...&postcount=289

57-57.50 looks strong (previous price peaks 56.80, 57.46, 57.77, 57.86)

3 purple circled vol bars showing a slowing down right after and then reversal.

Just a bounce play for now

Does anyone else suspect that V will too miss on reports? I may think about grabbing a few puts leading into earnings.

Was waiting on AXP to report before lookin at options.... and since they missed i expect them too.

http://online.wsj.com/article/BT-CO-...23-715172.html


Visa and MasterCard make money from the fees they charge banks including JPMorgan Chase & Co. (JPM) and Citigroup (C), to process card payments on the plastic these banks issue. These three financial institutions are the top issuers of MasterCard- and Visa-branded cards. The more consumers charge on their MasterCard and Visa plastic, the more these two companies earn by way of fees.

Therefore, as economic woes broadened, consumer spending slowed, eating into the fees Visa and MasterCard earn from transactions. Recent data indicate that the slowdown in retail spending is decelerating. For instance, the amount charged by borrowers using plastic issued by JPMorgan Chase declined 16.3% in the second quarter from a year ago, according to a July 17 KBW report. But the pace of decline slowed from the earlier quarter in which the amount borrowers charged on their credit cards was 16.4% less than a year earlier.

Visa - reports July 29.


MARKET EXPECTATIONS: Analysts polled by Thomson Reuters expect quarterly earnings of 64 cents a share on revenue of $1.64 billion for Visa's fiscal third quarter. A year ago, the company reported earnings of 59 cents a share on revenue of $1.64 billion. The quarter that ended June 30 will be the company's sixth as a public company.

In this environment, Visa has an edge over rival MasterCard because it has a larger market share in debit cards, which are used more frequently than credit cards for non-discretionary expenses such as groceries, dry cleaning and gasoline. In an economic downturn, consumers rein in discretionary expenditures, such as flat-screen televisions, typically charged to credit cards.

After going public in March 2008 in a $19.65 billion initial public offering, the largest in U.S. history, Visa shares more than doubled in value, soaring above their IPO price of $44. But shares have since fallen as the credit crisis intensifies, and closed at $66.85 Wednesday.

This is interesting, both V and MA are recovering
http://online.wsj.com/article/BT-CO-...23-715172.html

I guess the real tankage won't take place until the actual earnings release to the public

I would expect V and MA to do a lot better than AXP did, you have to remember neither have debt there just the middle man collecting fees. Another thing to is that AXP charges and higher % to merchants compared to MA and V which are lower, thats why you notice a lot of places dont take AXP. I think MA and V will both have great quarters

And She's off....................

This is nerve-wrecking to watch if you are in this through earnings.

was down almost 3% AH and now back to green, lots of info digesting here.

Yeah I really don't do earnings that report AH they seem to get banged around more than in PM unless it's a biotech

on top of that, credit card business is so shady that its tied to consumer spending and consumers' repaying power, many complicated issues and uncertainties involved

just because more card use, doesn't mean you'll be making more in the future when a big part of population going out of jobs and going defaults on payments

what a crazy reversal V had today

From what I understand Visa (and mastercard) don't actually take on any debt, they make money on transactions. The middle man if you will, between the consumer and whichever bank is involved. So technically more card use would actually mean bigger profits for V.

I think that's accurate but you may want to poke around yourself if it's of interest to you before making any decisions or whatever.

EDIT - here's what it said

"Unlike traditional credit card-issuers, Visa and rival MasterCard Inc. (MA) don't lend to consumers. This makes the two companies less vulnerable to credit woes stemming from delinquencies and souring credit card loans. Visa and MasterCard make money from the fees they charge banks to process card payments. The more consumers charge on their MasterCard- and Visa-branded plastic, the more these two companies earn by way of fees. Therefore, as economic woes broadened, consumer spending slowed, eating into the fees Visa and MasterCard earn from transactions."

V - Aug 70 Calls

anyone here have these ones ?

tia

watch for the 75 break

in Oct 75 calls as of this morning

visa & ma getting killed

moving down esp. visa

visa getting pelted before weekend

what does any one think for earnings play tommarow

should have good earnings V almost always beats,im looking at calls