Visa and MasterCard on sale

Discussion in 'Stocks' started by TulsaTrader, May 14, 2010.

  1. 10% off sale.

    Picked up some Visa this afternoon at $77. I think this is a pretty good place to try a trade.

    Target is $85. Stop is $76. This gives a $1 to $8 risk/reward.

    The low on "flash crash" 5/6 was 75.91. Today's low was 75.92. That's techincally a higher low right? Ok, maybe that's stretching it a bit.

    If this trade fails then I think the next spot to try would be around $66
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  2. They are on the radar. Still wating for market sentinment to determine direction. Preferably looking for a long side position. Value and bussiness model are good. A concern is loss/gain revenue due to FX market.

  3. Credit cards are broke, haven't you seen how many people defaults their payments?
  4. This is complete misunderstanding of the CC business model on your part. Visa & MasterCard are mere payment processors. They own the networks, they license the products to the member banks and they process the payments. That's it. Their credit risk is a big fat zero. That is borne by the member banks issuing the cards.
  5. merchant associations don't take risk, banks take all the risk,
    Its more about how the market perception in value in the company though.
    Can be worth only 5x :D
  6. The horse bucked me off at $75. Climbing back on here at $70 after seeing it bounce off $68. Stops are just below $68.

    We may not see any real upside moves until after options expiration.
  7. Those stocks are knocked down due to the risk of legislation allowing merchants to charge different prices for payment via credit card. If enacted, it will have a huge impact on their transaction processing volume.
  8. Bob111