The Globe and Mail reports in its Monday edition that Christine Poole of Davis Rea in Toronto is keen on Visa. The Globe's Brenda Bouw writes that Ms. Poole first bought the stock in June, 2014, for $52 (U.S.) a share (it underwent a four-for-one stock split in March, 2015) and has continued to buy over the years. "We bought more of it recently at $326 (U.S.) when the stock pulled back after President Donald Trump announced his support for the Credit Card Competition Act in the U.S., which would introduce more competition into the payment processing market," she says. "But the banks aren't supportive because they would have to invest a lot to rejig their payment systems. We saw it as an attractive entry point. We like the long-term thesis on Visa as the world continues to transition away from cash and cheques toward electronic payments. Visa is also the largest network, has significant scale and generates substantial free cash flow. It has also been developing its non-transactional business such as cybersecurity services, which are less sensitive to transaction volume." Despite geopolitical risks, Ms. Poole believes a lower interest-rate environment and government stimulus will help the economy expand and boost profits.
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