Is the upcoming VISA IPO worth cashing out your Roth IRA and other retirement savings and investments for?
The VISA IPO is expected to come out as early as around Christmas or as late as end of February. VISA's the world's largest electronic payments network with almost 2 billion credit cards and debit cards in circulation worldwide. VISA's owned by about 20,000 member banks worldwide and offers unsurpassed acceptance around the world at more than 30 million merchants and retail outlets. Its sales volume and number of credit and debit cards in circulation is almost double that of no. 2 Mastercard. Last year, VISA did $3.2 TRILLION in global revenue, compared to $1.9 Trillion for Mastercard. If No. 2 Mastercard's stock can jump 5 fold in 19 months' time, then No.1 VISA could do just as well if not better! Do you think it is worth unloading your Roth IRA and other retirement savings, and/or investments so you can get more cash for a shot at VISA's stock?? HOW MUCH savings and or investments would you UNLOAD so you can buy as many shares of VISA stock??
Public Comments
- Good God, no!!! Never speculate with your retirement savings on an IPO.
- It sounds risky I am not to sure I would. The stock might come out at a high price and kind of stay there. I would rish on something that you know might grow into something big...
- this is going to be a challenging buy! if you look at alibaba.com, high expectation lead to sell-off the next day people basically took the money and run. I'd expect the exact same thing for visa I am planning to put down 10K at the beginning of the day and sell half at the end of the day. and i'll wait till the 3rd day or the 4th day for a pull back then reinvest more money into it and leave it long. Good luck! remember, only put money in there that you know you won't be needing them for the next 6-12 month. just in case price drops then you are stuck in the position because you'd lose money when you sell them at the wrong time.
- Lol, take some advice from a shrewd observer... ;-) Did you watch the Master Card (MA) IPO? Do you remember how much negativity there was surrounding it? The vast majority of analysts were screaming "Lawsuits!!!!" - because they thought MA was being taken public mainly to raise money to settle lawsuits. That is all they said. I was truly expecting the price to decrease, and I was going to jump in around $30-$35. What a joke. It never saw less than $40. Back then, VISA said they had "No current plans for an IPO". Then once MA started taking off, VISA said they had been planning an IPO for months and months. So, 1 of those 2 statements was a blatent lie. They were waiting to see how well MA did. There is no other company out there that is even comparable to MA, so they had to watch it. - MA has gone up about 400%. - VISA plans to raise approx. $10 Billion. If MA would be sitting at $40/share, VISA would have an IPO for about $2 billion or so, NOT $10 Billion. Like you said, 20,000 banks own VISA. ******They are the ones that already made most of the money.****** VISA will NOT go up 400% as quick as MA did.
- Hi, Though it is expected that Visa IPO will surge upon it's first day some rumors came out that it will be held overpriced so it won't be good to stay long on this kind of investment. It's good and worth it just don't stay long....
- No matter how great the prospect, never cash out your Roth IRA or other retirement savings for one single, risky investment. That is not the objective of those vehicles in your financial plan. If you have left over speculation money, then by all means invest a little. Get the advice of Cramer or the Fast Money traders on CNBC who I'm sure will have an opinion on if Visa gets listed at a fair value or not and key off of that. Their experience, research staffs and connections into the brokers make them more right then wrong.
- What's the valuation? If you don't know the valuation, there is no way to know how this thing will do at IPO...for you, in that case, the way to make a decision now on whether to invest in the shares is simply to flip a coin. D
