Spotlight on Visa

" I beat that mark mentioned it one of the most clicked on stocks on -- back comment of course that is the operator. The world's largest electronics. Payment system which is an important way to distinguish it. Because they do the payment processing. Not the bank's back. Posted a 5149. Dollar profit for the fourth quarter that would according to stand there and also announcing a one billion dollar share repurchase program which. To be right could be wrong but does indicate they believe their own stock is undervalued its shares up 50% cents on March low. Which markedly don't -- the market but today are trading up about 4%. Let's go inside because numbers because you -- just listening -- had a -- finance the search. And to be with you Rick we appreciate it so. What what do you think's the most important headline here the number is the Sarah purchase what is it."

" I think it's really two things here and one was the top line surprise. -- we were expecting a good quarter from these but frankly we were expecting it would sort of a law in line top line result in good margin expansion. And -- just very soundly on the top line and that means that there's more earnings power going forward. The second metric which I think is really critical is the two billion dollars of free cash flow that they got into. -- you made the comment about the repurchases. I'm not even necessarily sure that that's a function of how they see their stock price but simply how much capitalist companies could be forming going forward."

" Okay so we can't interpret and and by the way sometimes companies and their stock prices are going up. They don't buy it. If you don't want to read into it that they think their stocks undervalued by that announcement in an avid south what do you see -- in their future hired."

" Look this is one of the great global franchises this is a business it's growing. Top line -- ten or 11% there's tremendous operating leverage for. Every dollar of revenue that they generate almost ninety cents goes to the operating line. It is very unique to find a company this large with this level global penetration. Where they continued to grow earnings the way we expect these two were looking for better than 20% growth going forward."

" I just came up with a really. Horrible scenario. That -- earnings are increasing because of increased. Increased number of transactions more more transactions are being made even if they're for less money these these transactions. Are are growing in number and maybe because people don't have the cash. And that. Sometime in the future this comes back to rob bite them in the nether regions I know that's not -- problem. It will be the banks from whoever is the card that. And maybe this is a sign that things aren't that great."

" Is very interesting point mark what I would. Observers that. Actually a lot of the growth for -- is coming from the debit side. I like you are right they are doing more transactions the transaction sizes are smaller -- it is in fact people substituting. Using credit for money that they -- have in the bank. I'm again it's very consistent with what we're seeing I think the consumer is being more conservative."

" We hope they haven't made up in the bank and I just charge it could be debit to write the Vietnam attorneys have sponsored that it."

" That's what I'm saying the real growth is on the debit side at this point there's been a very significant substitution. Especially domestically. In terms of going from credit -- debit transactions. Yeah. I loved ones in line avenue -- Two and a half dollar cut off. I see I think he goes faster when your mind like that. I'll rarely. You know here. Here's three box. Thank you and I out the door meanwhile someone else is why mimic garden signing that thing make you got hit on his number one."

" That's Don Mario -- is you're leaving it in earnest because markets to wait for all these people to run their cards through. -- and a half. I'm victor. I don't typically aren't so there were erected -- up in the middle of us thank you very much --"