I can't remember how MA traded on its open a couple years ago. I know it didn't just go straight up. I am more likely holding off on it. I really hate new IPO's. That is unless you have it and can dump it on the open market onto Jonny public. I think its a huge trap long term. I don't believe in the credit business. I don't believe in MA either. Yeah, we know its strong in this market but I would never touch it (Well, I did say that about GOOG and it continued to soar). My gut are people are looking for the diamond in the rough and are gonna get burned on this with the mentality that "MA can do it so can V" I hate the hype of IPO's too by the media on this...
Credit is king. The world revolves around credit. Ask BSC The thing with MA & V is that they don't manage credit, they collect on usage and credit is getting easier to use. The government has forever hated people with cash, no way to accurately tax it. Push the masses to using virtual cash, check cards (either visa or mastercard logo). IBM and other retail management system providers are developing the future systems that will eliminate UPC codes, most likely replaced with RFID or other wireless tracking devices. These systems will utilize automated check out systems. They will push more transactions by making manual payment methods cumbersome, like 1 cashier to process written check or cash payments while dozens just walk out the door without ever greeting a cashier. V pretty much dominates the check card segment. Now, short economic disaster, credit will continue to flow freely...for the immediate crunch, yes the restrictions are tighter, but credit is still there for the asking. Visa and Mastercard are leverage for the working class. How many people do you know who buy big ticket items like Plasma TVs or furniture after SAVING CASH up to do it? Buy now Pay later. You can not run business today without accepting plastic, not in any form of retail at least. Also, let's not forget the banks who get to charge loan shark interest rates on those who carry balances, they too push and entice consumers to leverage. All in all, I don't see V having a 2 year run like MA or GOOG since they are rising players, V is the top dog MA is chasing in the transaction game. V doesn't have the growth prospects that MA does, but it certainly has growth that the segment has. Imagine China & India moving in the same direction..... MA traded in the 40's May opening - Jul then Aug 06 a straight line up till today. No, I will not be trading V today.