So with all this feedback about ipo, it comes down to the dumb money makes the first buy tomorrow to get the ball rolling. Then shorts will make their play and make a quick in and out. Then more shares will be offered and price will fluctuate. Over time it will be shown where this stock really stands...after lawsuits are negotiated, and after law decides if VISA has unjustifiably taken the market share of the business. many liabilities pending for VISA.
Difficult to short an IPO...actual shares are not delivered for 3 days....BD don't have a lot interest in playing games right now in this environment.... One lesson to learn: A ton of people talk about shorting, especially on ET, but very few actually do it to any success.... But, hey, it is your money....several big traders were wiped out shorting GOOG, LOL SteveD
all i can say when reading the IPO news and looking at the number is: VISA is also in trouble and it knows it and it's trying to protect against future econ outlook.
yes I too see VISA with pending major lawsuit about unfair market share. Although VISA is not a lender and not tied with the credit crisis, they have some problems related to how they became so big. Its about VISA allegedly used illegal tactics to stomp out their competition. I see VISA with having huge growth potential becasue of the switch to using debit and credit card on internet for purchases worldwide. But if the lawsuit finds VISA guilty for stomping out their competition, then this will slow their future growth. Mastercard also had legal issues when they went public but it was still successful. This VISA IPO is a different ballgame than mastercard. My opinion VISA could never be as profitable percent wise as master card, but I still think the potential for profit in LONG TERM Its a wait and see how their legal issues unfold in my opinion.
however, the long term is something pretty vaguely defined. we need to know a clear timeframe. If we're talking about 10 yrs, many IPOs are a great investment vehicle.. however, in the nearer term, 3 yrs say, i don't see V very far. i don't want to say it's going down, but considering the incoming crisis (notice i say "incoming" coz what we are in is nothing) i am not optimistic... i would stay out of any IPO at this time. It's a way for companies to hedge themselves against future problems.... Best IPOs are when things look good.
To go the indirect route to profit from VISA by buying shares of National City who own a 8% share of VISA could be a way regular joe can profit right away.