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Visa IPO: Better than MasterCard?

Posted March 4, 2008

“If you missed out on Mastercard last time, Visa could be your next chance at being a millionaire… even a billionaire.” — Ann Sosnowski

by Ann Sosnowski

Baltimore — (TFN): In the biggest IPO offering since 2004, MasterCard Inc. (MA:NYSE) raised $2.4 billion in 2006. Investors who hopped onto that IPO could have ended up with 463% gains.

In fact, Diligent Investor subscribers ended up with gains of 259% in only one year, averaging 22% gains every month on their investment!

Other credit card stocks have paled in comparison. American Express Company (AXP:NYSE) has dropped 21% since MasterCard IPOd.

And Discover Financial Services (DFS:NYSE), which debuted its stock in June 2007 hoping to piggyback on Mastercard’s success has failed miserably. It priced out originally at $28 per share and is currently worth $15 per share, a drop of 46% in value.

But now, a new (and clear) leader is about to enter the market and leave MasterCard in its dust.

Visa, with a market cap of $30.69 million and revenues of $5.5 million, is planning to unveil the largest IPO issue in American history. Expected to be worth $19 billion, it will raise 700% more than MasterCard!

Visa expects to price its shares between $37 and $42 per share, right around MasterCard’s offering of $39 per share. Currently, MasterCard is worth $190 per share not two years after its debut.

If you missed out on MasterCard last time, Visa could be your next chance at being a millionaire… even a billionaire. Although MasterCard is the leading global provider of credit and debit card services for 25,000 banks, Visa is the operator of the world’s largest retail electronic payments network in the world, helping it capitalize on new growth in emerging markets. That makes it even more valuable than MasterCard.

After all, “life takes Visa.”

You may have missed out on MasterCard. But don’t miss out on Visa, which could make you even more gains than 463%. View a chart comparing MasterCard to other credit card company stocks and find more by Ann Sosnowski.

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Posted by Ann Sosnowski · Filed Under US Stocks and Markets 

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