Wednesday, March 19, 2008

Life Takes Visa, Now So Does the NYSE

Today saw the largest IPO in history when shares of Visa (NYSE: V) began trading at $44 a share. The stock opened at $59.50, ringing in a quick 33% profit for those lucky enough to get in on the IPO.

With the credit industry being hit hard by the subprime mortgage scandal, the excitement surrounding this IPO may be a good sign.

In May 2006, MasterCard (NYSE: MA) launched their very successful IPO. In less than 2 quarters the stock more than doubled. Today the stock trades at nearly 4 times its IPO price. The stock also went pretty much unscathed during the subprime mortgage scandal.

Needless to say the outlook of the credit industry is not great as energy and food costs continue to rise. But, the history of MasterCard's stock would seem to bode well for the future outlook of Visa's. Only time will tell.

In the interest of full disclosure, tKC does have a minimal stake in Visa Inc.

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