Visa, the world’s biggest consumer payment network, reported third-quarter 2011 profits that beat analyst expectations.
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New York, NY (PRWEB) November 02, 2011
Profit Confidential, the popular stock market and economic e-letter, reports today that higher profits at benchmark stock Visa Inc. (NYSE/V) are proof that U.S. economic growth isn’t coming to a halt as “recession part II” pundits have been claiming.
According to Profit Confidential, “Visa, the world’s biggest consumer payment network, reported third-quarter 2011 profits that beat analyst expectations. Visa reported a profit of $880 million for the three months ended September 30, 2011. Business is so good, Visa is buying back its own stock in addition to boosting its quarterly dividend by a whopping 47%.”
Profit Confidential says that Visa can be looked at as a benchmark stock that gauges economic growth. Benchmark stocks are the stocks of companies that are dependent on the sale of goods or services to either consumers or business. Common sense dictates that when the world’s biggest credit card company is seeing its profits rise, it’s a good indication of economic growth, not contraction. The more products or services consumers buy, the more profit for benchmark stock Visa—a good indication of economic growth.
Michael Lombardi, a lead contributor to Profit Confidential, writes that he is personally bearish on the long-term outlook for the U.S. economy for many reasons. He believes that “the government and Federal Reserve are limited in their next moves should the economy start to contract again. But the economy isn’t collapsing today. The economy will slow over the next few months. Higher profits at benchmark stock Visa are proof that economic growth isn’t coming to a grinding halt…just quite yet.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
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