On Investing section of this website most of my successful investing posts have been about the Master Card so with all the VISA IPO noise I wanted to post about my initial thoughts in VISA stock investing.The Visa IPO, is set to debut sometime in early 2008.The VISA IPO is highly anticipated by many investors.If Mastercard (MA) IPO’s success is any indication, the Visa IPO, which is the world’s largest credit card company, will be successful as well.If you’re looking for a place to park your hard earned cash for a couple years and get a good return, the Visa IPO is looking like a good place to do that OR wait to buy MasterCard when the Visa IPO comes out in the first part of 2008. The Visa IPO took another step towards success today after the SEC gave its restructuring plan the go ahead. The Visa IPO will open big and then sink not withholding MA competition.In this case, Also can everyone get IPO price ? I don’t think so, My guess is that unless you have a big account with some big broker you won’t have much chance of getting in on Visa IPO.
Besides Master Card let’s see other credit card stocks.Discover is the latest “pure play” card company to go public, trailing the very successful IPO of MasterCard last year, and debuting before the much-anticipated Visa IPO later this year.Trading under the ticker symbol DFS, Discover’s share price declined a dollar to $17 (November 9’2007 price).It started in 30’s and is now half of its price.This sends some worrying signals of investing in much hyped VISA IPO. On other hand, Mastercard (MA) has about a 20% market share and it more than tripled in its first year of trading.
Historical Reported data:
In the first half of 2006, Visa reported $771 billion in transactions, compared with MasterCard’s $411 billion. San Francisco-based Visa last year held about a 60% share of credit and debit purchases, compared with 27% for MasterCard, according to the Nilson Report, which tracks the payments industry.
There is still time until early 2008 when VISA issues its IPO.I’m 80% sure its a good investment as long as humans exist and they take credit, companies like Visa and MA will give good return for their investors.