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Visa Inc. Message Board

  • autolanes8 autolanes8 Apr 7, 2014 10:52 PM Flag

    Visa is oversold

    But it can remain oversold just as well. If you look as to when the shares started to decline, that was on March 21st. On this same day, Visa stopped doing business with 4 banks in Russia, due to US sanctions on those banks. These sanctions only had less than 1% of Visa's operations in Russia, but that is not important. What is crucial is that Russian legislation is moving to ban all foreign credit card operations in Russia, and that could have an effect on Visa's bottom line to some effect. Even the recent Ruble's fall by 10% since Russia invaded Crimea will have negative effect on Visa's Russian operations, when Visa tries to repatriate earnings in Russia back to the USA, they will effectively lose 10%. It might not effect this quarter earnings, but it will definitely effect it next quarter, and that is very important. If the Russians do pass the law banning foreign credit card operators in Russia, Visa and MasterCard stand to lose more than 30 million Credit Card users and over 100 Million Debit Cards in Russia, and that will have an effect.

    Big institutions already know this, but the small guy is slow to pick on this information, by the time it is already known the shares would have fallen another 10-15% more. Be careful, recent price moves are not coincidence because of unemployment figures as wall street will have you believe, but somebody knows something that average Joe is still trying to get sober from the weekend.

    I think we could see 190 very soon, maybe tomorrow and after tomorrow we get a small bounce. That could be sufficient to calm average Joe from selling his Joe, while institutions continue to raise cash by selling their shares and adjust their portfolio into the next stock cycles. Be careful.

    For the record I am short Visa from 212.25.

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    • here you go from wikipedia....Visa Europe Ltd. is a membership association and cooperative of over 3,700 European banks and other payment service providers[4] that operate Visa branded products and services within Europe. Visa Europe is an entirely separate company to Visa Inc. having gained independence of Visa International Service Association in October 2007 when Visa Inc. became a publicly traded company on the New York Stock Exchange.

    • LOL....would NEVER have thought you were short. Although, claiming Russia will kill Visa's business might have been a hint. Russia is not crucial to Visa's business. And V will always have these pullbacks, and V will always rebound.

      You are the one that needs to be careful, because we all know the greatest two words in the investment world are: SHORT SQUEEZE.

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