What does everybody think about the Visa IPO?

Merilyn asks:

I know Visa is mainly trying to this because they want to be more independent of banks.

4 Comments to "What does everybody think about the Visa IPO?"

Roberta

Since the member banks are the majority stake holders, the banks will experience a windfall profit - something to think about. Also, VISA doesn’t yet know how to behave as a company which is responsible to shareholders. I think they will struggle with share price until they stabilise a couple of years down the track
Reinaldo

I haven’t really looked into it. Have you researched on how Visa is different than Mastercard, MA? I know MA doesn’t hold any of the debt that people ring up on their cards, they basically get paid a transaction fee everytime a card gets used. Does Visa work the same way? If so, it might be a good one to pick up!
Bertie

I can’t wait. All VISA does is process transaction so their exposure this credit crisis is limited. I can’t wait.
Georgeann

The banks will do well. NCC is one of the major players. Basically, Visa will get paid every time someone swipes one of their cards.

They are saying Visa will IPO at about twice MA, so $80 is about the price. I feel Visa will be $160 easy on the first day of trading so I would buy the banks and sorta ride Visa’s coattails by buying NCC instead. Also, NCC pays a good divvy.

Visa will be better financially than Mastercard because it is the industry leader (60% of the market) in the credit-card business. I would not buy Visa until a few weeks after the much-hyped IPO, if at all.

Below is a link to a good article.