Filed under: American Express (AXP), MasterCard Inc’A’ (MA), Lehman Br Holdings (LEH), Bear Stearns Cos (BSC), Initial public offerings, Stocks to Buy
Recently, I’ve been getting too many emails and comments on my blog asking what I think of the Visa (NYSE: V) IPO. Listen, every single long-term investor should be interested in it. Until today, it’s been one of the few remaining marquee companies around unavailable to our stock-obsessed society and aside from litigation risk, the company’s got everything going for it.
It’s got strong sales and transaction growth and more importantly, like rival MasterCard (NYSE: MA), it’s immune to the current credit crunch, passing off cardholder debts to the banks. So, when others are sweating potentially catastrophic events like The Bear Stearns Companies Inc. (NYSE: BSC) and the potential collapse of other brokers like Lehman Brothers Holdings (NYSE: LEH), scaring everyone half to death, these guys are sitting pretty. This is also the main reason why MasterCard’s stock has handily outperformed rivals American Express (NYSE: AXP) and Discover Financial Services (NYSE: DFS), two companies — and stocks — that are certainly feeling that credit pain.
There’ll be plenty of other articles dissecting the company, but I find that in rare situations like these, it’s best to think in terms of the general picture. Not because it’s the right way to invest, but because it’s the way most people do. And those most people are the ones who can really influence the stock price here.
Continue reading My take on the Visa IPO
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