Visa - Final Thoughts

Ticker Symbol: V

Final Thoughts

Chief Financial Officer Pollitt reiterated he was "cautiously optimistic" about the company's prospects going forward.

Credit card processors have been relatively resistant to the massive downturn in financial stocks because of their insulation from default risk. But a renewed savings incentive and declining consumer spending have proven to Visa, and Mastercard for that matter, that the electronic payments system is not recession proof.

We are wary of any industry so closely tied to consumer spending, especially if unemployment rises past 8% in the coming months and American continue to up their savings habits.

On the bull side, Visa has strong cash flows and a minimal leverage footprint. Yet Visa trades at very high price multiples.

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