Visa IPO a Huge Buy Inspite of Lousy Tape Action
I will admit that I went long on the Visa IPO. I sold my holdings of GOOG (at a loss) and EWZ (at a nice profit) this morning before the market open and went long on some VISA stock at $59.5/share. I only allocated 1/3 of my portfolio to VISA because I didn’t like the tape action in the first few minutes of trading. There was no strong rally or buying preasure, upon the opening. The stock apeared to have debuted somewhere around $65 and quickly sold off to $55, before rebounding to $59, thus validating my original suspision of poor tape activity. Fortunately, I didn’t go all in and I still have enough cash to buy more should it go lower.
Visa should be at $70 right now given all the hype surounding the IPO and Visa’s stellar fundamentals and growth prospects. BUT-I am still VERY bullish on the long term outlook of Visa, which is why I’m holding (even at a slight loss).
Visa has dominant marketshare-66% of creditcard market, surpasing Mastercard by a large margin. In addition, Visa has huge growth prospects in emerging markets such as China, Brazil, Russia, and India. Visa’s market cap is roughly $23 billion ($58.2 share X 400 milloion shares), which isn’t that excessive when you consider that VMware has a market cap of $16 billion or that GOOGLE is worth over $200 billion, yet when these companies went public they were only worth a couple billion. I woudn’t be surprised to see Visa having a $60 billion dollar market cap in the next year, as its earnings contonue to grow. The potential is absolutely huge.
The 1-day chart is very bullish with a short term target of $65
My target for Visa is $100 within the next few months, asuming the market doesn’t fall off a cliff. As I wrote many times on Iamned.com, we’re still in a bull market and a global economic boom as humanity transitions to a globalist, smartist type one civilization. We’re still in the ‘new era’ of spendism, consumerism, paymentism, and hyper capitalism. Visa stands to benefit directly from this transition.
As I continue to add to my Visa position I’ll update.
Dow Rockets 419 Points! Ned is right again! Bull Market Continues!
As you can see from the chart below the S&P 500 has rebounded sharply off support, as I predicted it would:
Since the S&P 500 never managed to close below 1252 the bull market which began on October 2002 continues. I predict this current bull market will last for decades due to economic and financial perpetualism.
Bull market is not dead:
All of the stocks I recommended on my blog such as GOOG, MOS, POT, MA, BIDU, RIMM, AAPL, FSLR, ISRG, EWZ are all up a lot today. Had you taken my advice and bought any one of these stocks you will have made pretty good money with almost no work at all except placing a buy order.
Awhile ago I told people to buy EWZ stock at $72 cause we’re in the ‘new era’. If anyone took my advice they would have made 10 percent, while the overall stock market was flat in that same period. That is because when Ned says it is time to buy it is usually time to buy. I don’t fail.
Also, since we’re still in a bull market and there aren’t any tangible, serious economic problems the dow will rebound to 14,000 in six months and end the year at around 14,500. By early 2009 the dow will pass 15,000. The only recession we’re in is an imaginary, media generated one.
Time 2 buy
Stock Market Surges Off Lows. The ‘New Era’ ISN’T Going Away
Oh no head for the hills! Batten the hatches! Hide your money under a mattress and ready the ammunition! Armageddon is here! Bear Stearns is history! The Dow is crashing in the premarket. The S&P 500 is cratering! The end is here!
Or is it? Maybe not. As of 1:PM Eastern time the Dow is down a whopping 40 points. Yup…a whole 3/10 of a percent. I guess the ‘end of the world’ will have to be put on hold. The DJIA still has yet to penetrate the lows made back in Jan 23rd, while the S&P 500 and Nasdaq are just grazing those levels. So for all this negativity, the markets have yet to make any meaningful new lows, which is an extremely bullish sign.
Why did the market rebound so strongly? Wasn’t the Bear Sterns washout a catalyst for a financial meltdown? Why are stock only down a little? Maybe because as I have written last week that the Bear Sterns isn’t a big deal and that we’re NOT in a credit crunch or liquidity crisis. The only ‘credit crunch’ is one created by the pro-Obama, anti-free trade, leftist media. There is HUGE credit and TONS of liquidty.
The main reason why stocks are STILL holding up so well IN SPITE of all the negativity is because none of the negativity is real or tangible. It is all an imaginary distraction created by the pro-Obama, boo hoo hoo leftists. There is no recession or bear market. The S&P 500 is still well above the critical 1552 level and there hasn’t been a SINGLE quarter of negative GDP growth since 2001. Millions of people are still using facebook and myspace. Millions of videos are watched everyday on youtube.com. Students are still attending colleges and maxing out their credit cards. You can’t tell me there is a recession when I can’t see any evidence of one. Nothing has changed between now and 2005. No concrete evidence of substantial economic weakness whatsoever.
The ‘New Era’ is real. We’re in an era of web 2.0, globalism, hyper capitalism, globalism, spendism and consumerism. Job security, retirement, and healthcare plans are a relic of the past, as is the rapidly dissolving middle class. The ‘middle class’ is incompatible with the ‘new era’ which we are living in. ‘The creators’ of the New World Order also known as the ‘Smarties’ are in power, which is why McCain a pro-growth, pro-free trade, pro-globalization, cheap labor politician, WILL be out next president. In the ‘new Wea’ of Web 2.0 and google and ’social networking’ there is no room for such niceties as ‘job security’ and privacy. Nope not anymore. The war in Iraq will continue for decades and the relentless rise in commodities such as Oil, Gold, and Wheat will not subside. Phone lines will be tapped. Consumer spending and creditcard debt will only increase, which is why you MUST buy MA and VISA stock. MA will go to $300 in a year. The smarties are proponents of open borders because more illegals=more profits for multinationals and technology companies, and less jobs for American citizens. But since the smarties are in power this outcome is inevitable.
Since we’re in the ‘new era’ you must also buy GOOG, MOS, GLD, DBA, EWZ, POT, BIDU, AAPL, RIMM and ISRG stock.
Resisting the ‘new era’ is futile, which is why you MUST go long and buy the stocks recommended on iamned.com and hold them.
Mint.com is worth $2 billion dollars.
Mint.com is a web 2.0 website that allows users to track their personal finances. From techcrunch here is a more detailed description of the site:
Mint is a personal finance application that lets users track and monitor their financials in one place without the need of routine maintenance or accounting knowledge. Their application tracks bank, credit union and credit card transactions and alerts users to upcoming bills, low balances or unusual spending. Mint’s patent-pending technology automatically categorizes transactions, so users know with precision where they are spending money, what their bank and credit balances are, and how much interest they have earned.
Although mint.com is a new site, it has EXPLODED in popularity. Just check outs its Alexa graph ,which shows a nearly tenfold increase in reach in the past year:
Mint.com already has a huge userbase, and has the potential to revolutionize the way people manage their finance. Mint.com could easily be the next smartmoney.com, fool.com, quicken or quickbooks. The potential for growth and revenue is unlimited.
I arrive at the $2 billion dollar figure because mint.com already has already seized the majority of the ’social finance’ marketshare, which could easily be a $10-100 billion dollar industry in the next decade. Mint currently has over 160,000 users and it adding 10,000 users every week, which is extremely impressive for a company just a year old. Also, no other company can compete with mint.com because mint.com already has such a large lead. Trying to compete with mint.com would be like competing with Google or the IPod. In addition, wouldn’t be unreasonable if mint.com’s revenue exceeded $10-20 million dollars a year by 2010, with its revenue doubling ever year.
If mint.com were to go public this year, would it be too far fetched to assume that its market cap would exceed at least a billion dollars in its first day of trading? I think not. Funds and institutions are more than willing to invest hundreds of millions of dollars in the future of social finance.
Therefore for the reasons above a $2 billion dollar valuation is far from bubble territory, but it is in fact very reasonable.
We are in a new era of web 2.0 and smartism. Web 2.0 companies aren’t just websites but entire media entities such as CNN or Fox News with huge userbases and huge revenue growth. Mint.com isn’t just a financial website, but a financial media company with millions of potential users that can be monetized.