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?
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.
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.
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.