Visa IPO: How to profit from a historic American IPO
According to TodaysFinancialNews.com: "You have a number of options to profit from Thursday’s Visa IPO. First, you could simply try to buy shares in the aftermarket. In a best-case scenario, you would buy at or near the issue price and watch your shares go up followeing the same trajectory as MasterCard or, even better, Google. But there are two more ways to profit…"
So, what are the other two ways? Well, the first one really irritates me. They claim there is some "Secret IPO Fund" that you can buy into. However, the only way to find out what that registry is, you must first register with The Diligent Investor. What a scam. If anyone knows about this "Secret IPO Fund" let us know.
The last way? Small-Cap Pit Trader Ian Cooper has selected another strategy to profit from the IPO — without exposing yourself to the volatility of the IPO itself: "The biggest beneficiaries of Visa’s IPO will be the Bank of America, Wells Fargo, and JP Morgan. Each stands to reap millions if they sell their stake, post-IPO. Citigroup and JP Morgan Chase cashed out their holdings post-MasterCard IPO and took one-time gains of more than $100 million." I would be careful of this strategy as well.
Not everyone is excited about the Visa IPO, however. Andrew Snyder: "Don’t forget, Visa recently announced that it lost $861 million last year, on revenues of over $5.2 billion. Numbers like that do not deserve the $38 billion market cap Visa is expecting. Stay away from this one, at least until it sheds its early overvalued price."
