What companies are tomorrow's big winners? In our ongoing series, I'm chatting with members of our team at Fool HQ to discover the stocks on their watchlists. (For your convenience, you can now create your own watchlist for free at Fool.com, giving you all the information you want on the companies you care most about in one spot; just go to www.MyWatchlist.com to get started).
Today, Motley Fool CFO Ollen Douglass shares one company that he owns and is thinking about discarding, one he owns that's just right, and one he's watching and is likely to buy.
Two he owns
Visa
"When I bought shares, I was looking at debit-card purchases as the biggest growth drivers for the payment networks," he said. "But now, if banks can only charge up to $0.12 per transaction instead of the roughly $0.44 now, banks are going to be a lot less enthusiastic about issuing debit cards and encouraging their use, and Visa's share will be cut. It's always tough to get caught in the middle of a hot political debate, and that's where Visa is right now."
Ollen says he needs to decide whether this setback is overblown or temporary in nature, which could indicate an opportunity to add to his stake at a bargain, or whether it's just the beginning of a consumer-friendly regulatory spree that cuts into profits for banks and the networks that enable their transactions.
He's much happier with portfolio stalwart UPS
The only downside -- at least for someone who doesn't yet own the company -- is that the share price has been climbing strongly since mid-year and now trades near the top of its 52-week range. But keep the shipper in mind if you ever need a company to make your portfolio happy.
And one he's poised to buy
SanDisk
His one concern about the company is its seeming reliance on Toshiba, potentially a concentration risk in case the partnership falters. But a recent contract for a joint venture to build a factory together signals a healthy relationship, says Ollen. The company only recently came to his attention, so he still needs to perform his due diligence before committing. But he's optimistic that this company will be making the jump from watchlist to portfolio.
And that's why it pays to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above: