Visa Cup with Handle

Visa (V), $65.75: As I mentioned on Twitter last week, the stock is building a cup with handle pattern. A down-sloping handle is currently forming with a pivot point breakout at $68.55. I will be looking to add shares on a breakout. FYI: I currently own shares from 2008.

See the post Visa, from December 17, 2008 for further details:

Why do I like VISA’s potential?

• $1o Billion would represent the second largest IPO ever!
• Revenues are expected to grow steadily as consumers continue to use their cards
• VISA processed 44 billion transactions totaling $3.2 trillion in 2006 (Mastercard processed 23.4 billion transactions totaling $1.9 trillion)
• VISA has made $771 million on $3.7 billion in revenue during the first nine months of 2007
• VISA makes their money from the fees it charges to card users and merchants using its network

BEST OF ALL:

• Because it acts as an intermediary, Visa doesn’t sustain losses when consumers don’t repay the debts run up on credit cards bearing its brand. Those liabilities instead fall to the banks that issue the cards and set the terms of repayment
• Most of Visa’s major stockholders are banks. They include: J.P. Morgan Chase & Co., which owns 23.3 percent of the company’s Class B Stock; Bank of America Corp., 11.5 percent; National City Corp., 8 percent; Citigroup Inc., 5.5 percent; U.S. Bancorp, 5.1 percent; and Wells Fargo & Co., 5.1 percent.

Let’s see what happens. The gov’t here in the US scares me these days when it comes to credit cards so pay attention to what they are doing. I wish they would just butt-out and go back to doing what they are meant to do.