Visa has been making a big push to upgrade its credit and debit cards to new technology that uses computer chips instead of magnetic strips.
On Thursday February 9th, the gang spoke with Stephanie Erickson head of authentication product integration at Visa about the massive trend underway.
Erickson tells us, "we have laid out a road map that's from now until 2015 for merchants to being to upgrade their point of sale terminals to being to accept this technology. Many merchants have already begun to lay the infrastructure."
Following the conversation, we thought you might be interested in seeing Finerman’s trading strategy again; something she first presented back on January 31st.
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"Of course you could play the trend long Mastercard and Visa ," Finerman says, but if you do you also take on the risks associated with consumer spending. "Instead, I think the hardware and the software that facilitates the migration is the way to play."
Finerman suggests looking at the following names:
Gemalto
Global Payments
Verifone
Diebold
NCR
“I think the migration is going to happen. Longer term I believe that this is where the industry is going,” she says. And with these plays you can get ahead of the curve.
And on February 8th Joe Terranova offered another name. "I'd look at NXP Semiconductors, Broadcom and/or Infineon for mobile payments."
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NEW SLIDESHOW: The Top Secrets of Pro Traders
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Trader disclosure: On Jan. 31, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns NUE; Adami owns INTC; Adami owns BTU; Finerman owns AAPL; Finerman owns BAC; Finerman owns JPM; Finerman owns MSFT; Finerman owns IBM; Finerman owns GOOG; Finerman owns ORCL; Finerman owns GPN; Finerman owns CF; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long AXP; Terranova is long JOY; Terranova is long MCD; Terranova is long OXY; Terranova is long IBM; Terranova is long SU; Terranova is long TRLG; Terranova is long CNX; Terranova is long SBUX; Terranova is long SNDK; Terranova is long GOOG; Terranova is long MA; Terranova is long UNG April $5 puts; Terranova is long AAPL Feb 430 puts; Terranova is short AAPL put spread; Terranova is short AAPL Feb 440 puts;
For Jon Najarian
No disclosures
For Larry Haverty
Gabelli Multi-Media Trust is long AMZN
For John Bollinger
Bollinger has positions in IWM
Bollinger has positions in Small Cap Russell 2000
For Rishab Ghosh
No disclosures
For Kerry Rice
(AMZN): I, Kerry Rice, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company (ies) and its (their) securities. I also certify that I have not been, am not, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.
CNBC.com with wires.
