So what advice do I have today... Well, not much. So let's talk about the upcoming Visa IPO. It is scheduled to happen sometime within the next 12-months, plenty of time to shift resources around to get ready to buy the day it opens. First, how do you do this, for those of us who are mortals I like to place a limit order at which I am willing to buy and keep hitting the order button until it is accepted at the earliest possible time. This works with TDAmeritrade since they let you submit right before the bell. This is how I got in on VMW at 51. (Just a word to the wise, Wall Street can be brutal, if you saw, VMW dropped 22 after the bell today since it's forecast isn't what WS wanted to hear) So, store your cash and subscribe to my blog as I will be posting more on when some of my favorite IPO's are supposed to happen.
Back to Visa, my concern here is the current economy and the credit problems already encountered. If the consumer doesn't gain confidence on spending or more banks are forced to write off bad credit the potential for Visa to not do as well as expected is there. What is the issue you might ask? Well, again for us mortals who won't be getting in at the opening price we should be a little more conservative in what we are willing to pay. Otherwise expect some good near-term profits to be had.
Currently Visa's lead underwriters include JPMorgan and Goldman Sachs. GS had an outstanding year despite all the economic turmoil. You can visit the SEC website to obtain the prospectus.
I enjoy your blog and have also been following the Visa IPO and the hype around. I have a question though... I do have an ameritrade account, so can you elaborate on the process of getting the IPO? Ameritrade said that they do not participate directly in IPO's. Is there a way I could get in at the IPO price? Is it a matter of money?
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