VISA already sold to the big banks. VISA unloaded their shares at 44 to the big banks Tomorrow the banks will try to see waht they can get when they sell thier shares to the public. Of course it will be more than the 44 they paid..they want to make some cash. How much they get remains to be seen. I see this as a long term money maker for the average joe. Not something to jump into tomorrow, but a wait and see where the price goes over the next 3 to 6 months.
That is not quite how it works. JPM and GS get paid a "selling concession" as underwriters for placing the shares in the hands of institutions.
Ok, thank you for the clarification. So to put it in simpler terms, does this mean that not only do JPM and Goldman have bought at 44 per share but now jp and gold habe to sell to institutitons for higher price to make their profit? After that sale, then the instituitons will sell to public for an even higher price to make their money. Ok so regular joe buys for higher price..all the big guys have pocketed their profit. Now its wait and see if VISA grows enough over time to make the shareholder regular joe some money? Yes?
Has anyone noticed the unusual amount of shares they have authorized to issue? Why the heck would a company need to be able to offer 2 trillion shares of Class A Stock (yes you read that right), if the need arises? Is this just a random number the underwriters pull out of a hat? I don't get it. See here for the Visa Registration: (look under Section 4.1) http://www.sec.gov/Archives/edgar/data/1403161/000119312508055589/dex31.htm
As underwriters, JPM and GS do not "position" the IPO stock. They allocate it to institutions and wealthy individual clients@ $44. They get paid a "selling concession", sort of a commission for placing it and acting as the banker.. Joe Blow will pay $60 or $70 tommorrow on the opening and buy it from the guys that got it @ $44, on the hopes it goes to $100!
Yes, I see now. So the $44.00 per share had JP and goldmans "commission fee" already priced in. Then the banks will sell to regular joe tomorrow for even higher. So joe regular buying tomorrw will be bying an overvalued stock at (tomorrows price) BUT if VISA grows it could be a good long term play.
did any of you trade during the Blackstone IPO day? I would have loved to short it. I remember somebody got printed at like 44 but those trades may have been busted.
I normally think IPOs are overpriced garbage. However I missed out on VMW's huge run because of thinking like this
You just do not get it....do you?.....The banks are not selling it! Insitutions and day traders are the sellers, I told you THREE times, the underwriters JPM and GS do not trade it from inventory on the opening. What makes you qualified to decide if it is over/undervalued at $44, the market decides price. I am done, buy a book on IPO's please.
No one knows, but if a persistant trend up is shown I have no problem jumping in at a middle price and going up to higher for a profit. Not everyone buys at the lowest lows to make a profit.