Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: UMassHoops One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 58  
Subject: Re: Buy or not to buy Date: 11/13/2007 7:39 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
On the timing of the IPO, Visa has been preparing for this for a few years, it has nothing to do with the turmoil in the credit markets.

I have sold software to them for years and as a result get intimately familiar with their budgeting process. For the past couple years it's been all about cutting budgets, getting their house in order, etc. etc. in anticpation that they would be going public.

Unfortunately due to the success of Mastercard I have a feeling that the Visa IPO will be more enthusiastically received and price much higher as well than MA initially did. That is unfortunate because I would love to own a piece of this fantastic business.

Visa the organization going public is really the transaction processor (why they need all the software) and brand holder. They have member banks that issue the cards.

Several years ago when I sold to them I used to refer to Visa's IT organization as the "country club" because it seemed like the execs played a lot of golf and had bankers hours. The organization was bloated to say the least and you could always count on them spending a lot of money on projects, demo/lab equipment etc. far in excess of what most leaner public companies would buy. In short they had money coming out of their ears and their model was to bill member organizations, so it made little sense to curtail spending, they just eventually added it to the tab. So that is the good news, I still think there is a lot of efficiency and fat to cut out of Visa, but they have been on that track for a little while now.

It will be interesting to watch, any reasonable valuation and I will definitely open a position.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Deranged Monkey Criticism

RadioShack Afloat on a Sea of Financing
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement