Life May Take Visa, But Visa Stock Needs a Break
Shares of Visa (V) Stock have already nearly doubled in price since its $44 IPO on March 19th of the 2008 year. The stock this past week hit a new high of $87.64, but could not keep momentum up and Friday posted its only third distribution day since its debut in March.
Visa stock is ready for a rest.
Visa had a huge reversal after it posted earnings Tuesday with the stock falling as low as $71 before surging all the way to a close above $80. Tuesday and Wednesday the stock managed to make more ground but the close on Thursday set the stage for a bearish Friday as the stock closed in the lower half of the day’s price range. You can see these closes in the stock chart I have of Visa stock below.
The blue lines resemble the areas where Visa is most likely going to find technical support, with $82 already holding up as of Friday. For the advanced trader buying into a Visa stock pull back is with some risk but may reap huge rewards. Just take a quick look at Mastercard (MA) and see how how its story unfolded.
Though technically Visa is ready for a breather, keep the stock on your close watch list and be ready to pull the trigger when the timing is right.
All this BS with the charts and the analysis etc. might be valuable if stocks behaved in a reliable, measureable fashion, but since they dont, this article is worthless. The author’s remark that Visa had a “huge reversal” after it posted it’s results is not accurate at all. The stock went up almost 10 dollars in the two days after the quarterly report. The only “correction” was in the after hours market, when all the day traders paniced and tried to get out.
Blain is a chump and his advice is lame. Visa will keep on chugging up for quite a while just like MA did. Buy it now before it hits $150 or $250!
hahaha I published this comment because it was so enjoyable to read, thanks for writing in Sammy! You should hop on the Yahoo board and add your extensively bullish sentiment over there. Cheers.
Blain, well, I’d do that but then I’d be taking your advice again! What’s with the emoticon that looks like satan? You should be using this one-
I should have gone for the extra smiley smiley,
.
“Visa will keep on chugging up for quite a while just like MA did. Buy it now before it hits $150 or $250!”
What’s the time outlook on your $250 price target Sammy? $44 to $250 is a pretty strong move.
AMEN BROTHER!!! Dont bet against Visa unless you are determined to be a loser!
I figure $100 is a slam dunk within 30 days. $150 by the end of the summer and $250 by next April. I base this on the fact that Visa has almost no debt, is capitalized up the ying yang, has a fabulous business model and is a much better run company than MA. Visa will be just another IPO success story like GOOG, MA, and VMR. It is the proven leader in it’s industry and has very little downside risk. I see it becoming a mainstay of every mutual fund in the same way that MSFT and CSCO and GE are. GO VISA!!!
Howz it goin’ guys.
I understand where Blaine is coming from with the technical analysis, and I agree with him that the Visa stock looks like is may go sideways/go through a consolidation period for a little bit.
I think that Both Blaine and Sammy Flash are right – Blaine, from an active trader/technical standpoint and Sammy, from more of an investor/fundamental standpoint.
Blaine, overall, are do you think that V’s longterm outlook is bullish? Sammy, I’m with you, and believe that it is.
The stock dudes on TV are comparing MA to V all the time. I’m hoping favorable sentiment rises when people pull up charts for MA and realize “WOW, MA started out at about $30 only one year ago and is now trading in the $320 range.” I’m hoping that Visa keeps getting exposure and media says “recession proof” over and over again when talking about this stock. Nothing like some strong sentiment in conjunction with the stellar fundamentals that Sammy pointed out.
Buy yeah, seriously, GO VISA!!! is right. I’m way out-of-the-money on some calls that don’t expire until Jan 2010. Thought I’d buy and hold rather than swing trade this one.
Sorry for the delayed response, but wanted to tell you I agree. Long term Visa is a big buy and having those leeps better yield some return as if this stock doesn’t run like MA then something isn’t right!!
Hope the market volatility has been treating you well, good luck out there!