IN and OUT Investing: Visa and Domino's

Domino's Pizza (NYSE:DPZ) shares have been left for dead and the number one credit card company is still Visa (NYSE:V), forget Mastercard (NYSE:MA) which is down 4% today at over $200 a share.  Charge your Domino's pizza on your Visa card, the end.

Look at VISA today, its no Mastercard
Last week Visa (V) posted a $514 million profit for the fiscal fourth quarter after suffering a $356 million loss in the same period a year ago.  Profits were pushed by increased debit card transactions and a reduction in operating costs.

Visa’s fiscal fourth quarter earnings work out to 69 cents a share, which compares to a loss of 45 cents a share last year.  Excluding one-time restructuring charges, the company earned 74 cents a share, slightly ahead of analyst estimates for 72 cents a share, according to a poll by Thomson Reuters.

Fourth quarter revenue totaled $1.87 billion, up from $1.71 billion in the same period a year ago and ahead of analyst estimates for $1.78 billion.

For the full fiscal year, Visa earned $2.35 billion or $3.10 a share on a revenue increase of 10 percent to $6.91 billion.

Looking ahead, Visa said it expects revenue to grow 11 to 15 percent in 2010, leading to a bump in earnings of at least 20 percent. 

If you are thinking about buying Mastercard today on the 4% dip, think again, go long Visa and save yourself the hastle.

Domino's Pizza - Time for a Look
Domino's Pizza, Inc. (NYSE:DPZ) shares have taken a beating since Oct 13th (down 22%) and despite the company's profit of 17 cents per share that was two cents better than analysts expected, the selling continues? Hungry for Pizza yet?

(WallStNation.com) On Oct 13th, Domino's (DPZ) posted Q3 revenue of $302.7 million which was short of consensus estimates of $308.9 million. Same-restaurant sales were flat in the U.S., although they were up 2.7% internationally. With top-line results softer than expected, the pizza chain cited lower interest expense and tighter cost controls for the robust bottom-line results.

OVERDONE
The Nation believes the recent selloff of Domino's shares is overdone, like a Domino's pizza that is more than 30 minutes late. Take it easy, you'll still get your pizza, and its free.

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Disclaimer: No positions in any of the securities mentioned in this publication.