Visa has lost 15 percent of its value in the last three months. We expect 23 percent upside this year now.
We see this as a great opportunity to increase our position and have bought more shares.
China offers significant volume growth, as does a number of growing emerging markets.
The shift in consumer retail habits to using card over cash will secure long term growth.
When you see the shares of Visa Inc. trading under $70 it just goes to show how tempestuous the markets have been. For us Visa represents one of the best companies on the S&P 500 to invest in with its strong, predictable earnings growth and a market leading position. So to see its shares get cut down by almost 15 percent in the last three months is incredibly surprising.
The 15 percent drop in value does make opening a long position in Visa just too good to turn down. Nothing has fundamentally changed in the last three months, in fact, things have got better. The company beat on its earnings and looks set to have a bumper 2016. Our view is that there was probably an element of profit taking going on in light of broader market declines. Or perhaps profit preservation is a better way to put it. Whichever it was, the end result has the shares placed now at $68.33, as of the last market close, and we see meaningful upside for investors from here. Being current Visa shareholders we plan to use this sell-off as a vehicle to increase our position substantially. Something we feel sure that many current shareholders will be considering doing.
Source Google Business News