Michael B. Krause

Visa: Already Priced to Perfection

Lot of euphoric posting in this thread. Interesting. I do stand corrected about allocation of cash; from what I hear there is some more complex distribution methodology rather than sitting in a big bank account. (a portion will go to the litigation escrow account, another portion goes to share redemption ... this ultimately nullifies my 'value' call of V over MA shares on a cash vs cash analysis)

But this is a conversion to liquid stock of Visa assets for the hundreds of banks that hold an interest in this ... The cash raised in the IPO goes to the company itself. The banks that own it are just shareholders with a now liquid position.

Visa Already Twice MasterCard's Market Cap

I deal with the valuations in my upcoming seekalpha article. Here's the original link. Your numbers are pretty spot-on though.

scriabinop23.blogspot....

Visa Already Twice MasterCard's Market Cap

Market cap = Total outstanding shares * price.

Not = float * price.

Visa Already Twice MasterCard's Market Cap

The float reflects 52% of the total capital stock. So if you could buy all of the 406M shares, you would only own 52% of VISA.

Same goes for BX. They only sold a fraction of the company at IPO; the float is smaller than total outstanding shares.

Visa Already Twice MasterCard's Market Cap

www.sec.gov/Archives/e...