Visa IPO

[PsyopRanger]

Justing wondering if anyone plans on looking seriously at Visa's IPO scheduled to be offered around March 17? Prices estimated at $37-42.

Could it perform similar to Mastercard's IPO in this market?

Visa owns 40% of the market share while MA owns only 20% plus the new bankruptcy laws could assist as well?

Thoughts?

Lance

 

[al_bundy]

consumer spending is bad

 

[Salaryman]

Mastercard opened 40.3 & closed recently at 190. Visa and MC are function as the middleman....card issuance and delinquency issues reside with the card issuing bank. Not a bad business they're in.
Currently Visa is owned by the various banks that make up the consortium of owners, many of them need the pick me up from a good IPO due to the credit crunch.

Salaryman

 

[Ronnieboy]

I would take Visa (V) in the IPO, not sure how to do it though the sharebuilder service I have been using.

 

[al_bundy]

VISA is moving the IPO to wednesday from thursday

wonder if it's a coincidence that on thursday the unemployment claims come out and they have data that may put a damper on things?

 

[Patrick]

Looks like initial pricing is going to be $44.

I'm buying 200 shares.

 

[Zathras]

I am just hoping I can get some before the price gets pushed up too much.

 

[Art G]

I'd bet you can count on Visa pulling back once the restrictions are taken off of it. I'd suggest waiting at least two weeks before buying in the open market. JMO.

 

[Ronnieboy]

Is that what happened to MC as well?

 

[Patrick]

It's up to $63 today.

 

[Ronnieboy]

I guess I answered my own question. It looks like MA opened about June 2nd at $47 and about two weeks later on June 16th it hit $45 and has gone on a tear since.

Is Visa going to offer dividends?

 

[Ronnieboy]

@Patrick-

Did you get your 200 shares?

 

[Enuff2Eat]

bought 100 share and start praying.

enuff

 

[ziggy29]

Reminds me of the halcyon days of dot-com IPOs. Once I was able to buy 100 shares of TheStreet.com (TSCM) at the IPO price of 19. I was able to flip it for 61 on the same day. Quickest $4200 (minus taxes and commissions) I never earned...

 

[FinallyRetired]

I got in for 400 yesterday. First stock I've bought in many years, other than funds. I figure this is a cash cow, they make their money on transaction costs, and don't depend on payments. I will put it away and look at it in a few years. OTOH, this might extend my streak of losing stocks, which is why I swore them off a few years ago. Oh well, no guts no glory.

 

[Patrick]

@Patrick-

Did you get your 200 shares?

They wouldn't let me buy the IPO, so I bought on the open market at the open for $59.50, and yes, I did get 200 shares. Would've been a lot better if I could've got the $46 pricing, though.

 

[Art G]

Reminds me of the halcyon days of dot-com IPOs. Once I was able to buy 100 shares of TheStreet.com (TSCM) at the IPO price of 19. I was able to flip it for 61 on the same day. Quickest $4200 (minus taxes and commissions) I never earned...

Someone got reamed out for that trade of yours. I'd bet it was the last IPO you got from that firm.

 

[Zathras]

@Patrick
Hilarious that is almost exactly what happened to me, I also bought at $59.50.
I heard Visa stated a dividend already. I believe it was $0.45 or just under 1%.
Although I have not seen this from Visa yet, just 'reports' in media.
Given the propensity of Americans to charge more and more every year and continue to live beyond their means this seems like a solid business

 

[ziggy29]

Someone got reamed out for that trade of yours. I'd bet it was the last IPO you got from that firm.

Yep. But I never planned to get another one, anyway, and this was in 1999 when even the junkiest dotcom IPOs were a sure instant double or triple.

 

[FinallyRetired]

Full disclosure. I made a mistake in my original DD. Thought V had ~400M outstanding shares, making for an attractive p/e of around 20. On further look, the banks are holding an additional 3-400M shares so the real p/e is already well above master card's, and V appears fully priced in the 60s. It's still a good long term investment, but I don't think it's the 2-3 bagger I thought it might be. So I closed out my position at a nice 10% gain in 2 days and broke my losing streak.

 

[Patrick]

Full disclosure. I made a mistake in my original DD. Thought V had ~400M outstanding shares, making for an attractive p/e of around 20. On further look, the banks are holding an additional 3-400M shares so the real p/e is already well above master card's, and V appears fully priced in the 60s. It's still a good long term investment, but I don't think it's the 2-3 bagger I thought it might be. So I closed out my position at a nice 10% gain in 2 days and broke my losing streak.

I got stopped out at $66.35. Good thing, because it closed at $59.73.

 

[Ronnieboy]

I think I am going to wait as Art G suggested for the two week mark and make my move then. Especially since the drop today... ;-)

 

[WarrantiesFurLess]

Extended View

Interesting,

There are very few financial catagory winners these days, so like many, I knew it would drop back quickly, and it did, but I am waiting for next financial show to drop which will shake Visa down to original offer in time.

Good luck to all, Mike

 

[wildcat]

These banks have to start unloading here soon. Those guys stand to make some serious bucks. Perhaps they can sell 'V' and invest in some more subprimes - my niece doesn't have any current income, education or earnings potential in the next 16 or so years but maybe she could get a loan. She's 2.

 

[HFWR]

Prime candidate for a 100 year mortgage...