Visa IPO $44 vs Mastercard IPO $39 ( Performance Analysis )
Credit Card Giant Visa IPO
| Current Price (4/30/08) | $83.45 |
| First Day Close | $56.68 |
| Return from IPO | 89.7% in less than 2 months! |
| IPO Profile | |
| IPO Date | 3/18/08 |
| Offer Price | $44.00 |
| Offer Shares | 406.0 mm |
Visa Inc. sold 406,000,000 shares priced at USD$44 each, raising nearly 17.9 billion dollars (despite a growing financial crisis in the country) before it begins trading on the New York Stock Exchange NYSE on 19 March 2007 - Wednesday under the ticker symbol "V"
It is the largest share offering (IPO) in US history (as of Mar 2007 ). Visa's IPO easily broke the US record of 10.6 billion dollars set by AT&T Wireless in 2000. But it is well short of the world's largest IPO, a 21.9-billion-dollar offering by Chinese bank ICBC, The Industrial and Commercial Bank of China, on Shanghai and Hong Kong markets in October 2006.
Analyst commented that the price was higher than the expected 38 to 42 dollars a share. But Market Sentiment was so strong that on the first day of trading 19 March 2008, it closed at USD$ , a sign of the strong demand for Visa's stock.
Very soon, I believe that it will give investor 100% return! Then 200%...300%.... and surpass MA 600% return!
And we believe that it will and it should give better return to Visa Investors compare with MasterCard Ticker!
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| Current Price (4/30/08) | $278.16 |
| First Day Close | $46.00 |
| Return from IPO | 613.2% in less than 2 years! |
| IPO Profile | |
| IPO Date | 5/24/06 |
| Offer Price | $39.00 |
| Offer Shares | 61.5 mm |
MasterCard went public 18 months ago, raising $2.4r billion (euro1.63 billion) in the 17th largest IPO in U.S history
MA IPO Price is USD$39 at 24 May 2006, closed at USD$46 on the first day of trading. Offered Shares - 61.5mil. MasterCard's shares have climbed by nearly sevenfold, closing on 30 Apr 2008 at $278.16!
MasterCard processed 23.4 billion transactions totaling $1.9 trillion (euro1.29 trillion).
Visa's payment processing network is by far the largest in the United States. Last year, the company processed 44 billion transactions totaling $3.2 trillion (euro2.18 trillion)
Visa makes most of its money from the fees it charges card issuers and merchants for using its network.
Because it acts as an intermediary, Visa doesn't sustain losses when consumers don't repay the debts run up on credit cards bearing its brand. Those liabilities instead fall to the banks that issue the cards and set the terms of repayment.
Most of Visa's major stockholders are banks. They include: J.P. Morgan Chase & Co., which owns 23.3 percent of the company's Class B Stock; Bank of America Corp., 11.5 percent; National City Corp., 8 percent; Citigroup Inc., 5.5 percent; U.S. Bancorp, 5.1 percent; and Wells Fargo & Co., 5.1 percent. Besides being a major stockholder, J.P. Morgan also is Visa's largest customer.
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To watch out :-
September 2008 : Visa is still fighting a similar antitrust lawsuit filed by Discover Financial
Services. That case is scheduled to go to trial next September.
CEO Joseph Saunders has promised to remain on the job until May 15, 2009.
Insider Trading of V @ http://www.form4oracle.com/company?cik=0001403161&ticker=V
Insider Trading of MA @ http://www.form4oracle.com/company?cik=0001141391&ticker=MA
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3 comments:
April 30, 2008 Report
( 2 days after Earnings )
Visa (V) – A 2.4% gain for its shares to $82.79 appears to have jump-started the speculative appetites of call traders in Visa. With nearly 130,000 options trading by noon, more than 4 times as many calls are trading as puts, and these at the out-of-the-money strikes we observed prior to its earnings announcement earlier this week. Two-way traffic is occurring at strikes of 85 and 90, while the 95 call strike attracted plenty of buyers at $1.05. Can Visa hit $100 in May? Traders have bet on that possibility more than 3,700 times today even though the 20-cent price of that position reflects just a 6% probability of it actually coming true.
From http://seekingalpha.com/article/74917-wednesday-s-options-report-c-v-bco-vlo-cbi-mnta-clx
Also
Citi trades lower on stock-sale news…but call traders are stoked.
Citigroup (C) - Today’s news out of Citi that it was raising the scale of its stock offering to accommodate robust public demand for its shares (pooh-poohing the dilution of current shareholders) sent its stock price down nearly 3% to $25.57 as of the noon hour. With nearly 176,000 options actively traded today, Citi is one of the heaviest-volume tickers on our platform today, and the prevailing trend appears to favor upside exposure via calls. Heavy buying was observed at the 27.50 call strike in the May and June contracts, while some traders looked to lock in bullish prices even further afield, paying $3.00 per contract for the right to buy Citi shares at $30 apiece by January 2010.
Visa V
Offer Date
3/18/08
Lockup Days
180
Lockup Expires
9/14/08
http://www.ipohome.com/marketwatch/lockup.asp
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