Visa IPO - V On Tap
The Visa IPO, trading under stock symbol V on the NYSE, will be on my screen today as one to trade. Pricing at the high of it’s range, it’s sure to have the attention of traders today.
“Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc. sold 406 million shares at $44 apiece late Tuesday to raise nearly $18 billion and complete the most lucrative initial public offering in U.S. history.
The price topped the range of $37 to $42 per share that Visa set three weeks ago, reflecting high demand to own a piece of a company that’s promising earnings growth of 20 percent despite a credit crunch that’s choking the U.S. economy.”
The great benefit of trading IPO’s is the fact they have no overhead, or sellers looming above. The trading patterns have a chance to take shape. Watch for intraday new highs… I like to buy over the 5-minute high. Also watch for a higher high after the first pullback to enter.
Search for “IPO” here to see how I’ve traded ‘em in the past.
March 19th, 2008 at 1:09 pm
Don’t forget that Visa along with MasterCard is facing up to the Credit Card Fair Fee Act. It was introduced last week by John Conyers and Chris Cannon, and if passed, it will give merchants more leverage in negotiating the processing fees.
Merchants pay it whenever they accept a card for payment, is much higher than the transaction costs it supposedly pays for. What happened in Australia could happen here — they capped the fees, and you know what? Card usage still went up. They should hope that happens. The lawsuits they’re facing over it might create a worse outcome for them.