Visa IPO...Overhyped?

[trendlover]

I see VISA potential for growth with thier DEBIT card expansion, not the credit card.
Yes this IPO is a way to raise some cash for banks that is badly needed, but that is not always a scheme to screw the shareholder. To make (long term) money for themselves they need to keep the shareholders happy too, yes?

 

[turkeyneck]

Do you think the market will be manipulated on Wed for the IPO with some phony upgrades, etc? The I-bankers are not that stupid to do an IPO when the market takes a dump.

 

[stock_trad3r]

The IPO will be a huge success. The stock will easily double in 2008

 

[trendlover]

Quote from turkeyneck:

Do you think the market will be manipulated on Wed for the IPO with some phony upgrades, etc? The I-bankers are not that stupid to do an IPO when the market takes a dump.

Who knows what their tactics will be to get it going? Everyone knows the timing couldn't be worse. But like you said they are not stupid. Only way to tell how it goes is buy after the IPO if a price uptrend can be seen, and go from there. My opinion is potential for long term growth..but the price will tell the story.

 

[zdreg]

Quote from quantumrock:

Of course the Visa IPO is overhyped.

IPO's are designed to make as much money for the company as possible and are therefore sold to the public at the highest price possible.

not true. IPOs are designed to make the most for the underwriters.

 

[zdreg]

Quote from peilthetraveler:

Anyone else think that maybe this VISA ipo isnt going to be like mastercard? I mean, the day of the IPO Visa will have a market cap of about 18 billion. Mastercard right now has a market cap of 26 billion which assumming visa stays around the same cap as MA, I dont really see getting more than a 50% gain and everyone is hoping for a 5 bagger like MA. Will the hype push Visa to the 100 billion market cap? Any of you plan on buying the first day, or do you think that Visa will probably drop into the mid to low 30s before it starts going up? 400 million+ shares being sold really makes it hard to push a stock up me thinks.

i suggest everybody read the prospectus before throwing irrelevant numbers around.

 

[WaveStrider]

Didn't Carlyle Capital time it's offering at just the best time to make money for the owners and leave the shareholders with an empty bag?

How's BX doing?

 

[trendlover]

Quote from WaveStrider:

Didn't Carlyle Capital time it's offering at just the best time to make money for the owners and leave the shareholders with an empty bag?

How's BX doing?

No doubt these companys were a suckers play for the shareholders, but that does not prove VISA will be. It doesn't prove anything.
No doubt VISA's motive is to raise cash that will be needed not only for the pending lawsuits from unjustified foreign transaction fees that are being reimbursed to cardholders right now, but also its said that the first 3 billion raised by the IPO will be put aside to deal with the lawsuit and litigation claiming that VISA unfairly tried to keep the lions share of the market by pursuading the banks that own VISA to not market american express or discover cards. That is pending lawsuit hanging over the companys head in addition to the foreign transaction fees that is being looked into. So yes VISA needs cash for themselves and for the underwriters. If the IPO is as successful as they are banking on, them yes the shareholders can make money too.
VISA unlike other IPO are not needing the cash for growth. VISA is an established company. That is one positive anyway.

 

[WaveStrider]

Quote from trendlover:

No doubt these companys were a suckers play for the shareholders, but that does not prove VISA will be. It doesn't prove anything.
No doubt VISA's motive is to raise cash that will be needed not only for the pending lawsuits from unjustified foreign transaction fees that are being reimbursed to cardholders right now, but also its said that the first 3 billion raised by the IPO will be put aside to deal with the lawsuit and litigation claiming that VISA unfairly tried to keep the lions share of the market by pursuading the banks that own VISA to not market american express or discover cards. That is pending lawsuit hanging over the companys head in addition to the foreign transaction fees that is being looked into. So yes VISA needs cash for themselves and for the underwriters. If the IPO is as successful as they are banking on, them yes the shareholders can make money too.
VISA unlike other IPO are not needing the cash for growth. VISA is an established company. That is one positive anyway.

They need money to fight lawsuits?

Sounds like a moneymaker!

Vonage probably used some of theirs that way too when it IPO'd.

 

[trendlover]

Quote from WaveStrider:

They need money to fight lawsuits?

Sounds like a moneymaker!

Vonage probably used some of theirs that way too when it IPO'd.

Don't forget master card had many lawsuit issues before their IPO, and that IPO was a huge success for the shareholders. No I do not think becasue of master cards sucessful IPO, it means VISA will do the same. I personally do not see those kinds of gains for VISA shareholders..not that magnitude. But do see (potential) for gains, not losses for the shareholders. No one can predict, but the probability is there.
Also Vonage was up and coming..VISA is not starting out and working through the kinks as a new company.