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Visa beats expectations

OCT27 Visa (V) did better than expected, which makes me laugh. Not because I might be making more money holding this stock, but because I still have on my mind all those doomsday analysts predictions, analysts and traders overreacting and freaking about earnings and company’s sustainability. A few days ago, Visa was falling for no particular reason, or maybe there was a reason, but I couldn’t find it, and even after the company reported better than expected results, the stock went through a sell off at the very end of the trading day just to reverse and shoot up in after hours trading. Sometimes, I really wish to know what is behind the scene, what moves the crowd to sell the stock in one minute and buy it back in the second one.

Here is what happened:


Of course, you never know what will happen in the market. Wall Street is too obsessed with earnings and sometimes pays too much attention to it. However, there is no guarantee, that a stock of a company such as Visa, which posted better than expected result, increased dividends and announced buying back its stocks, will grow. Many times you could see that a stock of a company with great results was falling and a stock of a company with bad results was growing and making new highs.

Maybe, these results, Visa posted despite of all those who were recommending selling it, prove again, that this company has very little to do with credit crunch, so when credit card companies get into a trouble, it doesn’t necessarily mean Visa is in trouble too. People, maybe, do not use credit cards as much as they used to, but they started using debit cards, and just take a look what logo your debit card holds on it. Anytime you use it, Visa gets its share.

It still may not mean anything anyway…

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