by winston » Thu Jul 21, 2016 6:52 am
not vested
Stocks to Buy for the 2016 Olympics: Visa Inc (V)
Visa Inc (V) has been a corporate sponsor of the Olympic Games for 30 years. The credit card company is becoming a big play on the 2016 Olympics with its desire to show off new payment technology and use the Rio Olympics as a test before some of its technology launches on a global scale.
Visa is the exclusive payment provider of the 2016 Olympics. This means it is the only card accepted at Olympic venues and sporting events. Visa plans on providing more than 4,000 point-of-sale terminals in Rio and also 11 co-branded ATMS.
During the 2012 Olympics, the average visitor spent $1,830, representing a big opportunity for Visa. More than 1.2 million travelers are expected for the Rio Olympics.
Visa launched its most ambitious Olympic advertisement campaign with its new “Carpool” commercials. These commercials, which started airing in June, feature Olympic athletes.
Visa said in a statement, “Our commitment to acceptance ensures you can use your Visa card whether you click, dip, tap, or swipe to pay.” The commercials will highlight all of those methods.
Team Visa athletes in the commercials will be testing a new payment method during the Rio Olympics. Athletes are getting Visa payment rings. The ring allows users to tap against a NFC compatible terminal to make a payment. The ring does not have to be recharged or have a battery replaced. Rings are water resistant up to 50 meters.
If athletes like the rings, you can bet they will be sharing their experience across their social media channels. Visa will be using the athletes as a test and also to get some marketing and brand awareness to consumers in the meantime.
Between the commercials aired during the 2016 Olympic and the new payment technologies shown off, Visa should be one of the top stocks to buy to gain from the Rio Olympics.
Visa is seeing strong growth in revenue and earnings, despite weaknesses in several international regions including China and Brazil, where the 2016 Olympics are being held.
The Rio Olympics could lead to an improvement in Brazil. Second-quarter revenue increased 6%. Payment volume growth was up 12% and processed transactions were up 9%.
Visa has been buying back its own shares, which it believes are undervalued. The company purchased $1.8 billion worth of shares in the second quarter at an average price point of $72.23.
In the first six months of the current fiscal year, Visa has purchased $3.8 billion of its own shares at an average of $75.47. Around $4 billion remains on the current buyback. Add the buybacks with revenue guidance of 8% and you have a strong stock, regardless of what the 2016 Olympics bring.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"