(Filed under stock tips,how to pick a stock)

Warren Buffet has often stated if he had 2 choices to invest between an average company at a cheap price and a great company at an average price–he would choose the latter..Visa to me seems like at least for a large-cap company a great company..They make profit on swaps and vending fees the merchants that use them pay..It always seemed like 95% of the time at a job I have worked for -a customer has paid by Visa and the choices are AMEX,MASTERCARD,VISA or DISCOVER cards when I would take payments on accounts.

Motley Fool-whom I greatly admired for the most part that really zones in on my favorite stocks–growth stocks that are small to midcaps- one of its writers predicted that VISA wouldnt beat the 3rd quarter earnings..I bet they would–payments made by plastic by debit is just the in thing for a long while and the economy so far hasnt hampered VISA nor MASTERCARD for that matter as far as earnings..VISA just seems like it can produce that 20-22% earnings growth per year and if I was a betting man I think they can do it-Large cap company or not.I think the one writer just doesnt like large -cap stocks for room for growth –I dont really hedge too much on large-cap stocks either–but VISA is an exception..Now institutions are betting this predictable growth and if they are right–they and investors will kindly profit over the next year..

Visa’s net profit was up 35% despite consumers tightened spending amid the recession in the 4th quarter earnings…And yes, they also beat the 3rd quarter earnings by 2 cents–so how’s that for that Motley Fool writer that predicted Visa wouldnt beat the 3rd quarter earnings..Sure they showed precaution for the rest of the year- in the 4th quarter earnings report-that is what I also like about VISA is they are very conservative with their forecast.. And yet so far, VISA has beat every earnings since their IPO last March..What is stimulating VISA’S growth is the move from cash to cards..VISA has predicted due to recent successes in cutting expenses,particularly marketing expenses,will boost the 2009 year profit by 20% so VISA has no downgrades in earnings estimates-that is something in this economy.

Most companies are cutting their estimates and still many times not hitting the greatly reduced earnings–creating a double whammy on the share price..Although I do not currently own any VISA shares–I wouldnt stop a possible buy on this stock by anybody..Net income by 20% on a large-cap company in this economy is nothing shabby..In fact,I am going off the wall and state I believe these institutions that are betting they will be earning anywhere between 19-22% per year will be about right and be rewarded very well in the long haul as a long..Then it really will be the V for victory for those investors. I rate VISA a buy this year at its current levels and really would see a near term entry on a pull back at around 53.00 a share.

Mike and Rob do not currently own stock in VISA,AMERICAN EXPRESS,MASTERCARD OR DISCOVER FINANCIAL SERVICES. However, we would possibly like to own VISA in the near future.Please do your own independent research before you make an investment purchase..See our disclaimer..

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