Visa Ipo

[WatchaMaCallit]

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anybody planning to buy visa stock? Mastercard IPO was around 50$ a share, and it reached a high end of $250. Right now, Visa's IPO'd at 60$, do you guys think it might also reach for the stars like Mastercard?

On the other hand, discover card, and American express have not done well at all. Comments, suggestions?

 

[mgdsh]

anybody planning to buy visa stock? Mastercard IPO was around 50$ a share, and it reached a high end of $250. Right now, Visa's IPO'd at 60$, do you guys think it might also reach for the stars like Mastercard?

On the other hand, discover card, and American express have not done well at all. Comments, suggestions?

I got in at the initial offer price of $44. Gotta love being an ultra valued client. I don't think that Visa would hit $200 a share anytime soon. That would basically value Visa as a $200 billion company. I mean I guess it could happen if the company beats expectations quarter after quarter and investors just become enamored with the stock.

Mastercard is still the smaller out of the 2 companies and has a much better growth rate.

Discover has never been a real competitor IMO, and while American Express is the best credit card to have as a card holder, its not as good as a stock holder, especially in these times, as AmEx holds the debt they issue. That isn't the case for V & MA. They basically make their $$ off of each transaction, and their card issuers (The banks etc) are the ones that hold their customers debt.

http://www.chrisperruna.com/2008/03/18/visa-v-set-to-launch

 

[WatchaMaCallit]

I got in at the initial offer price of $44. Gotta love being an ultra valued client. I don't think that Visa would hit $200 a share anytime soon. That would basically value Visa as a $200 billion company. I mean I guess it could happen if the company beats expectations quarter after quarter and investors just become enamored with the stock.

Mastercard is still the smaller out of the 2 companies and has a much better growth rate.

Discover has never been a real competitor IMO, and while American Express is the best credit card to have as a card holder, its not as good as a stock holder, especially in these times, as AmEx holds the debt they issue. That isn't the case for V & MA. They basically make their $$ off of each transaction, and their card issuers (The banks etc) are the ones that hold their customers debt.

http://www.chrisperruna.com/2008/03/18/visa-v-set-to-launch

how the hell did you become an ultra valued client? feel free to message me privately? The two major underwriters were goldman sachs and JP morgan. I contacted goldman sachs, and they said I would have needed to have a minimum of 5 million dollar in savings! 😱 I don't know about you, but I don't know that many residents with 5 million dollar brokerage accounts? And you had to have it with them for a period of a year or something....

kudos to you though! The stock in less than two days is around $65, you probably made a killing! I think Visa in 5 years will be a monster of a company. Any other person interested or following this stock?

 

[southerndoc]

how the hell did you become an ultra valued client? feel free to message me privately? The two major underwriters were goldman sachs and JP morgan. I contacted goldman sachs, and they said I would have needed to have a minimum of 5 million dollar in savings! 😱 I don't know about you, but I don't know that many residents with 5 million dollar brokerage accounts? And you had to have it with them for a period of a year or something....

kudos to you though! The stock in less than two days is around $65, you probably made a killing! I think Visa in 5 years will be a monster of a company. Any other person interested or following this stock?

Either he/she is a millionaire or he/she is full of ****.

 

[WatchaMaCallit]

Either he/she is a millionaire or he/she is full of ****.

even Erin Burnett, isn't an ultra valued client. You would think being an anchor on MSNBC, and after all these years she would have accumulated some wealth or some connections to get the stock! She kept on saying bob pisani, how much is it going to open, how much, how much? the stock apparently reached 69$ and then pulled back...but it jumped a good 7$ today...

 

[etf]

even Erin Burnett, isn't an ultra valued client. You would think being an anchor on MSNBC, and after all these years she would have accumulated some wealth or some connections to get the stock! She kept on saying bob pisani, how much is it going to open, how much, how much? the stock apparently reached 69$ and then pulled back...but it jumped a good 7$ today...

perhaps erin has an immediate family member that is employed by a broker/dealer, which would exclude her from being able to participate in ipos.

 

[WatchaMaCallit]

perhaps erin has an immediate family member that is employed by a broker/dealer, which would exclude her from being able to participate in ipos.

could you explain why that is...not exactly really savvy about these topics? Is it because there might be a conflict of interest, and she could try to pump the stock?

 

[etf]

could you explain why that is...not exactly really savvy about these topics? Is it because there might be a conflict of interest, and she could try to pump the stock?

pretty much. i'm not sure if the rule applies to everyone, but i know that because my brother is employed by an nyse member-firm, i'm not allowed to participate in IPOs. there are a lot of restrictions - when he began working there, he had to transfer all of his other brokerage accounts to one maintained by his firm so that they could monitor it. also, he's not allowed to trade options.

 

[mgdsh]

how the hell did you become an ultra valued client? feel free to message me privately? The two major underwriters were goldman sachs and JP morgan. I contacted goldman sachs, and they said I would have needed to have a minimum of 5 million dollar in savings! 😱 I don't know about you, but I don't know that many residents with 5 million dollar brokerage accounts? And you had to have it with them for a period of a year or something....

kudos to you though! The stock in less than two days is around $65, you probably made a killing! I think Visa in 5 years will be a monster of a company. Any other person interested or following this stock?

Believe it or not, every major brokerage (despite the ones listed on the Visa IPO prospectus - think Schwab, Fidelity, Scotttrade, ETrade, Ameritrade, etc) would receive shares of such a large IPO to distribute to their clients. The larger the firm, and the higher end that their clients are, the less likely they are to cater to you. I had a few friends who wanted to get in on the Visa IPO. My cousin, who's dad used to be a higher up at Citigroup, didn't get any love from supposedly being one of their valued clients.

So while you don't necessarily need a net worth of $5mil+ (but apparently you do at Goldman - one of the many reasons I'd never leave my any of my accounts with a firm that doesn't have to value their clients), but I can say I did have a few factors going for me at my brokerage:

- relatively large account size
- highly active trading account
- aggressive approach to investing (most places will have you fill out or answer some sort of questionnaire related to what you chose to invest in and regardless of the 2 prior factors, if they deem you to be a conservative investor, they will not issue you an IPO at the initial offer price)

It's kind of sad but true, that a lot of companies today will cater more to the customers/clients they are trying to obtain as opposed to keeping their own.

even Erin Burnett, isn't an ultra valued client. You would think being an anchor on MSNBC, and after all these years she would have accumulated some wealth or some connections to get the stock! She kept on saying bob pisani, how much is it going to open, how much, how much? the stock apparently reached 69$ and then pulled back...but it jumped a good 7$ today...

CNBC anchors/employees aren't allowed to own actual specific stocks. They just get overtly happy anytime something bullish occurs.

 

[halekulani]

for IPOs like this, you probably need to invest at least 1000shares of stock

grabbed it on opening day at 58.5

 

[etf]

Believe it or not, every major brokerage (despite the ones listed on the Visa IPO prospectus - think Schwab, Fidelity, Scotttrade, ETrade, Ameritrade, etc) would receive shares of such a large IPO to distribute to their clients. The larger the firm, and the higher end that their clients are, the less likely they are to cater to you. I had a few friends who wanted to get in on the Visa IPO. My cousin, who's dad used to be a higher up at Citigroup, didn't get any love from supposedly being one of their valued clients.

So while you don't necessarily need a net worth of $5mil+ (but apparently you do at Goldman - one of the many reasons I'd never leave my any of my accounts with a firm that doesn't have to value their clients), but I can say I did have a few factors going for me at my brokerage:

- relatively large account size
- highly active trading account
- aggressive approach to investing (most places will have you fill out or answer some sort of questionnaire related to what you chose to invest in and regardless of the 2 prior factors, if they deem you to be a conservative investor, they will not issue you an IPO at the initial offer price)

It's kind of sad but true, that a lot of companies today will cater more to the customers/clients they are trying to obtain as opposed to keeping their own.




CNBC anchors/employees aren't allowed to own actual specific stocks. They just get overtly happy anytime something bullish occurs.

yeah actually fidelity was offering the ipo to its clients. i got "lucky" once - they allocated me shares of interactive brokers at the ipo a while back, but it didn't really do much for me. since then i've learned that if they want to let ME have it, it's probably not worth having.

 

[WatchaMaCallit]

Believe it or not, every major brokerage (despite the ones listed on the Visa IPO prospectus - think Schwab, Fidelity, Scotttrade, ETrade, Ameritrade, etc) would receive shares of such a large IPO to distribute to their clients. The larger the firm, and the higher end that their clients are, the less likely they are to cater to you. I had a few friends who wanted to get in on the Visa IPO. My cousin, who's dad used to be a higher up at Citigroup, didn't get any love from supposedly being one of their valued clients.

So while you don't necessarily need a net worth of $5mil+ (but apparently you do at Goldman - one of the many reasons I'd never leave my any of my accounts with a firm that doesn't have to value their clients), but I can say I did have a few factors going for me at my brokerage:

- relatively large account size
- highly active trading account
- aggressive approach to investing (most places will have you fill out or answer some sort of questionnaire related to what you chose to invest in and regardless of the 2 prior factors, if they deem you to be a conservative investor, they will not issue you an IPO at the initial offer price)

It's kind of sad but true, that a lot of companies today will cater more to the customers/clients they are trying to obtain as opposed to keeping their own.




CNBC anchors/employees aren't allowed to own actual specific stocks. They just get overtly happy anytime something bullish occurs.

thanks for the clarification? Yeah, I learned afterwards as well, apparently banc of america would allow people to buy the IPO, but you needed to have a net worth of 1 million, and at least 50K in the account 😳 which is why I wasn't still able to participate haha

your kidding me? CNBC anchors/employees can't own ANY stocks? That's insane? I wonder soon enough if they will do that with physicians? example, physicians can NEVER own any pharmaceutical stocks? (conflict of interest again)...

damn, Easter friday today and the market was closed...I'm dying to see where this stock would head in the next couple of weeks! congrats to the guy who bought 1000 shares 👍 your going to be filthy rich?! maybe you can invite all of us to dinner when your stock starts flying high!

 

[etf]

thanks for the clarification? Yeah, I learned afterwards as well, apparently banc of america would allow people to buy the IPO, but you needed to have a net worth of 1 million, and at least 50K in the account 😳 which is why I wasn't still able to participate haha

your kidding me? CNBC anchors/employees can't own ANY stocks? That's insane? I wonder soon enough if they will do that with physicians? example, physicians can NEVER own any pharmaceutical stocks? (conflict of interest again)...

damn, Easter friday today and the market was closed...I'm dying to see where this stock would head in the next couple of weeks! congrats to the guy who bought 1000 shares 👍 your going to be filthy rich?! maybe you can invite all of us to dinner when your stock starts flying high!

with a net worth of $1M and $50k in the account, banc of america would have let you "participate" meaning they would let you enter an indication of interest. there is no way in hell they would give you shares, unless your initial net worth was $5M and your broker brought it down to $1M with bad performance and fees.

 

[TypeA]

your kidding me? CNBC anchors/employees can't own ANY stocks? That's insane? I wonder soon enough if they will do that with physicians? example, physicians can NEVER own any pharmaceutical stocks? (conflict of interest again)...

CNBC anchors/employees can own stocks...they have to disclose if there is a conflict of interest (and you often hear that they do or don't own a particular stock on air) should need arise.

 

[spyderdoc]

I was ready to plop a bunch of money on the IPO, but this is what my financial advisor said about it:


I've taken a 30,000 foot view of it and here's what I've found. The
company has Class A, B, and C shares. Only Class A shares are being
taken public. Post-offering Class A shares will have economic ownership
of approximately 50% of the company (i.e. they have an economic claim in
50% of the company's earnings). 406,000,000 are being offered at
~$40/share for total proceeds of $16.2 billion. There are a lot of
one-time items in the latest year's earnings (including the Amex
litigation expense that we previously spoke about that will not be paid
in cash until later). If we ignore the one-time items I estimate that
the earnings for 2007 were approximately $600 million. Growing this
figure by 20% we arrive at an estimate of earnings for 2008 of $720
million. However, as already stated, the Class A shareholders own only
50% of the company, therefore, their share of the $720 million in
earnings is $360 million.

In conclusion, the participants in the IPO are paying $16.2 billion for
the right to $360 million in earnings for 2008 (or a P/E of 45x).
Therefore, unless the company's current earnings are materially
understated (which is doubtful since Visa wants the maximum IPO proceeds
possible) or I'm missing something in the prospectus, the IPO appears to
be overpriced. This exorbitant multiple isn't that surprising given the
success of the more cheaply priced Mastercard IPO has gotten "Joe Main
Street" excited about the proposed issuance.