retrace

Profit from Visa - the Biggest IPO in U.S. History

Still watching,
below is a chart of MA (mastercard), as can be seen it was a couple of months in before it started to move. MA also IPOed under far more favorable market conditions.

"shares were priced at $44 each for the initial offering to those selected investors. But even if you had been able to buy the shares at the midpoint of the initial range, $39.50, that implies a price-to-earnings ratio of 18.8 on annualized fourth-quarter earnings, according to Francis Gaskins, editor of IPOdesktop, who recently revised his valuation the week of March 3. That's slightly below the 20.5 P-E of MasterCard (MA) as of early March.

If the stock stays well above $39.50 and the P-E exceeds MasterCard's, you may find that you're paying a rich price.

During Visa's first day of trading, shares were trading just under $60. That is 27.3 times higher than the company's most recent quarterly earnings of 55 cents a share, annualized to $2.20. That's higher than the 23.5 times Mastercard was trading on its most recent annualized quarterly earnings."

above excerpt taken from usatoday article,
www.usatoday.com/money...

MA chart,
stockcharts.com/h-sc/u...

V chart,
stockcharts.com/h-sc/u...

Profit from Visa - the Biggest IPO in U.S. History

Visa's online road show can be found here
www.ipohome.com/common...

click on
View the company's online roadshow

Profit from Visa - the Biggest IPO in U.S. History

I for one am interested in Visa and have been awaiting it's debut.
There financial filings can be found on the Hoovers site.

Joseph Saunders was named executive chairman to oversee its transition to a public company. Saunders has a great track record, he headed the turnaround of card portfolios at the former FleetBoston Financial and Providian, and is/has left his post as president of credit-card services at WaMu.

I held Providian stock from the low two's and watched intently as Sauders turn the company that many had said would/could not survive into a 20.00 dollar stock at which time it was sold at near that pps. He knows the card business.

But with that being said there are certainly more important factors to consider, as both calvino and gokou3 eluded to.

One of the big concerns I have is the timing of the IPO with the financial markets as they are.

I have followed and bought several IPO's and many retrace their initial rise in pps within the first few weeks, before resuming upward movement "if" they are going to.
Therefore, at least for me there is time to see what the overall market sentiment is before making a decision.

Master card initially hit the street at 40+- and went to 48+ in nine days, but a month after the initial it could be bought for 43+.
Google also did similar, hitting the street around 100, rising to 108+- than retracing and thirteen days after the initial it could be bought for 99+-.

IMO, patience gives one time to see how the street accepts an IPO, and hey if you miss it there will always be more.
Don't let emotions cloud judgment, were not here to love them, just to make money from them.
JMO