Discussion in 'Options' started by gilch, Mar 20, 2008.

  1. gilch


    " National City Corp. (NCC) said Thursday it will reap an aftertax cash gain of about $500 million, or about 79 cents a share, from Visa's (V) initial public offering Wednesday.
    The gain represents a redemption of about 39% of the bank's outstanding Visa shares.
    The Cleveland financial company said it will report first quarter earnings April 22.
    -Riley McDermid; 415-439-6400; "

    run above $13 after the reports are in?
    12.5 july calls?
    or do u think the this news is already reflected in the current price and spike today ??
  2. xyannix


    National City is looking for a buyer, not sure if it was a rumor i heard last week or truth.

    If the stock couldnt get a pop from a take over rumor no one cares about the additional windowfall from Visa, it is probably built into the stock price already.

    Look at EMC when the VMW IPO came out. The stock sold off the next three days because it was already pumped up before the spin off.

    As cramer said WM is a takeunder target, these companies will be bought for less than their stock price light BSC.

    JPM had the largest chuck of VISA. You are probably better off trading V or MA to make the big money. (long one and short the other) your choice :)
  3. gilch


    thanks for the input
  4. NCC has some serious sub prime exposure and is looking for a buyer. It has cut its dividend and has eliminated jobs. It's facing a class action suit and has had its ratings reduced. And I think I recall some sort of regulatory investigation.

    The VISA IPO will help a lot of banks. But I think that the bigger picture is the sector and the problems it faces. If the sector strengthens, most of the banks will do well since they have been beaten down. The question is, how much of the sub prime mess is resolved and how much add'l exposure does NCC have?