V, Visa

v b 2012v s 2012

According to Bigcharts this stock is trading at a of 98.35. Yahoo Finance has that ratio at 68.31. Whatever. At least p/e expansion is very unlikely from here on for this stock. The EW count is not at all clear except that the last leg can be counted as a 5 wave sequence and that, if there is a channel of we are about to hit the top. Additionally the RSI and MACD are not confirming the new highs. Simple put this is where one should apply the “buy low, sell high” adage even if you miss the absolute top by 10 dollars or so. The chart on the left is on semi-log scale. If one were to use a normal, arithmetic, scale the stock price is at the upper trend line as well.

It is not clear what exactly has propelled this stock up so much but charging 19% and paying 1% must be a good part of it. Loans losses to date have miraculously been somewhat subdued but that may start to change soon. A dispute over merchant’s fees is about to be settled in court and may cost the company about $4 bln.