I don't understand the stock market, I hate stock traders, analyze my stock V

[Anonymous]

My stock has gone from 230 to 198 in less than a month.

In the last month the following has happened which should all be positives:

1) Lawsuit over interchange fees was dropped
2) It has a strong buy ratings from all analyst
3) Target prices of up to 270
4) Beats earnings every time
5) No debt, high profitability
6) Shielded from economic conditions

WTF is this crap. Is the stock market not driven by earnings and logic? Is it just day trading electronic games to create money on dips and rises?

http://www.google.com/finance?q=NYSE:V

[Anonymous]

The other things that happened include:

-- Putin invaded Ukraine.
-- Huge run-up (profit taking)
-- Mixed earnings in the banking sector
-- Overvalued tech sector
-- Tapering
-- Volatility is self-feeding
-- Yeah, quant triggers are being hit
-- Economic conditions in BRICs are worsening. Manufacturing slowdown. They have been the engines of growth for the last 5 years.

[Anonymous]

Anonymous wrote:The other things that happened include:

-- Putin invaded Ukraine.
-- Huge run-up (profit taking)
-- Mixed earnings in the banking sector
-- Overvalued tech sector
-- Tapering
-- Volatility is self-feeding
-- Yeah, quant triggers are being hit
-- Economic conditions in BRICs are worsening. Manufacturing slowdown. They have been the engines of growth for the last 5 years.

Do traders typically just sell everything regardless if they are affected? I purchased the stock because it's business model is shielded from the above conditions.

[Anonymous]

Did you do a DCF and multiples comparison, read through the recent 10ks, listen to the last 3-4 earnings calls and compare Visa strategy to the competition?

The market as a whole is over-valued. Also, analyst opinions are notoriously exaggerated, a HOLD means SELL, a BUY means HOLD, and a STRONG BUY mans BUY.

[Anonymous]

What was your purchase price? The market is really bad right now so a lot of stocks aren't doing well. You're just going to have to wait for it to come back or sell at a loss. V should have good long term gains. If market fluctuations cause you emotional distress, then you may want to rethink how you invest and live with lower returns.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The other things that happened include:

-- Putin invaded Ukraine.
-- Huge run-up (profit taking)
-- Mixed earnings in the banking sector
-- Overvalued tech sector
-- Tapering
-- Volatility is self-feeding
-- Yeah, quant triggers are being hit
-- Economic conditions in BRICs are worsening. Manufacturing slowdown. They have been the engines of growth for the last 5 years.

Do traders typically just sell everything regardless if they are affected? I purchased the stock because it's business model is shielded from the above conditions.

They do if they are shorting the market.

Back in 1986 I was on the trading floor. Within seconds of the Challenger explosion, a trader in front of me had given short-sale orders for every defense contractor stock he could think of.

[Anonymous]

Anonymous wrote:What was your purchase price? The market is really bad right now so a lot of stocks aren't doing well. You're just going to have to wait for it to come back or sell at a loss. V should have good long term gains. If market fluctuations cause you emotional distress, then you may want to rethink how you invest and live with lower returns.

I bought at 65 a while back. I made mistakes with mastercard and sold it too early right after it went IPO.

I am trying to hold on but I feel like I am losing out by not buying / selling.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What was your purchase price? The market is really bad right now so a lot of stocks aren't doing well. You're just going to have to wait for it to come back or sell at a loss. V should have good long term gains. If market fluctuations cause you emotional distress, then you may want to rethink how you invest and live with lower returns.

I bought at 65 a while back. I made mistakes with mastercard and sold it too early right after it went IPO.

I am trying to hold on but I feel like I am losing out by not buying / selling.

Hmmm. I won't claim to be an expert, but I made quite a bit of money swing trading V last year. However, I have time to watch the market almost everyday and don't use a trader. Just Tradeking since the fees are low.

[Anonymous]

If you're worried about your stock over a one month period, you aren't cut out for owning individual stocks. V, along with the rest of the market has had a pretty spectacular run over the past few years. This market hasn't pulled back significantly since 2011. Big gains are typically offset by corrections, you just have to ride the wave. If you believed the stock was a buy a month ago, or had more room to run, then nothing should have changed your opinion today.

However, not sure how you think V is shielded by economic conditions considering they make money the more people use their credit/debit cards. Less spending means less swipes.

Ironically, I was thinking of buying V at something below 200.

[Anonymous]

Anonymous wrote:If you're worried about your stock over a one month period, you aren't cut out for owning individual stocks. V, along with the rest of the market has had a pretty spectacular run over the past few years. This market hasn't pulled back significantly since 2011. Big gains are typically offset by corrections, you just have to ride the wave. If you believed the stock was a buy a month ago, or had more room to run, then nothing should have changed your opinion today.

However, not sure how you think V is shielded by economic conditions considering they make money the more people use their credit/debit cards. Less spending means less swipes.

Ironically, I was thinking of buying V at something below 200.

Why is that ironic?

[Anonymous]

Visa is trading at 25 times earnings, way higher than its peer group. It's an overpriced stock by that measure and will revert to mean - downward.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What was your purchase price? The market is really bad right now so a lot of stocks aren't doing well. You're just going to have to wait for it to come back or sell at a loss. V should have good long term gains. If market fluctuations cause you emotional distress, then you may want to rethink how you invest and live with lower returns.

I bought at 65 a while back. I made mistakes with mastercard and sold it too early right after it went IPO.

I am trying to hold on but I feel like I am losing out by not buying / selling.

Hmmm. I won't claim to be an expert, but I made quite a bit of money swing trading V last year. However, I have time to watch the market almost everyday and don't use a trader. Just Tradeking since the fees are low.

I also meant to mention that it's awesome that you got in at 65. Sounds like you don't have too much to worry about

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What was your purchase price? The market is really bad right now so a lot of stocks aren't doing well. You're just going to have to wait for it to come back or sell at a loss. V should have good long term gains. If market fluctuations cause you emotional distress, then you may want to rethink how you invest and live with lower returns.

I bought at 65 a while back. I made mistakes with mastercard and sold it too early right after it went IPO.

I am trying to hold on but I feel like I am losing out by not buying / selling.

Hmmm. I won't claim to be an expert, but I made quite a bit of money swing trading V last year. However, I have time to watch the market almost everyday and don't use a trader. Just Tradeking since the fees are low.

I also meant to mention that it's awesome that you got in at 65. Sounds like you don't have too much to worry about

What is spooky is this stock went down to 45 during the 2009 hit. Being in the stock market can be scary wild ride with little or no logic.

[Anonymous]

Anonymous wrote:Visa is trading at 25 times earnings, way higher than its peer group. It's an overpriced stock by that measure and will revert to mean - downward.

How do you think the planned buy backs will effect this price adjustment?

[Anonymous]

it is correcting itself, happens often