“Visa Inc. Warns of Multiple Threats to Fiscal 2009 Results” (via Schaeffers Research)

November 21, 2008

Click here to read more.

The credit-card company could be hit with downgrades after offering a very cautious outlook

For a while there, it looked like Visa Inc. was relatively well-protected from the financial crisis. Since the company doesn’t actually supply credit to cardholders, it seemed as though Visa would continue to benefit as consumers increasingly favor plastic over cash for transactions. Today, some of these high hopes have been dashed by cautious comments from the credit-card concern.

In its 10-K filing, Visa warned that it could incur significant severance charges in fiscal 2009, as it “continues to evaluate alternatives for achieving synergies in the global organization.” Among the many risks to its bottom line are: penalties related to litigation settlements; costly new compliance burdens due to increasing global regulatory focus; intense competitive pressure on customer pricing; consolidation in the banking industry; negative trends in consumer spending and cross-border travel; and adverse currency fluctuations.

Speaking of litigation settlements, word also hit the Street today that Visa received its fourth civil investigative demand from the Department of Justice regarding potential antitrust violations. In its regulatory filing, Visa said it is cooperating with the DoJ in connection with its request for information.

[source: Schaeffers Research, Elizabeth Harrow]

Why Visa Inc. Stock Is Falling Today

March 24, 2008
Although it is only speculation and our opinion, due to the triple digit market rise on Monday and Visa’s several point fall, it seems that investors are finally warming to the reality of why the bank’s unloaded nearly half their investment in the giant credit card association.
Four months ago, WayTooHigh.com – The Credit Card Interchange Report began posting several advisories on the planned Visa IPO.

This is the most popular recent link, which identifies in Visa’s own words why the world’s largest retail electronic payments network may be more than risky. 

Want to know more about lead plaintiff ScanMyPhotos.com? Click here and read their daily blog: Tales from the World of Photo Scanning


Visa prices IPO at $44 a share, above expected range, raising a record $18 billion

March 18, 2008

The lessons of greed by leading financial institutions have not been learned – click here.   

A funny thing happened on the way to “Vegas,” for those readers of the earlier posts, including [“If We Were in Vegas, Our Wager Would Be on Visa’s IPO Not Happening,”]. 

Several weeks ago we began raising the question of whether the Visa IPO would be delayed or derailed.  After the most recent financial market earthquakes, we opined for the latter and with good reason.  We strongly felt that investors would be more risk adverse, pay closer attention to the IPO risk factors and analyze the banks’ need to bail out from Visa. 

However, the historic moves within the past 48-hours by the Federal Reserve by adding liquidity, covering the Bear Stearns takeover and announcing new protocols to lower key interest rates all helped temporarily prop up the financial markets.  Perhaps just long enough to keep the IPO window open for Visa’s thousands of member banks to run for the hills. 

WayTooHigh.com – The Credit Card Interchange Report will be closely monitoring and updating the events of the next few days and beyond.

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Want to know more about lead plaintiff ScanMyPhotos.com?  Click here and read their daily blog: Tales from the World of Photo Scanning


Visa, Inc. Due Diligence: Have Investors Talked With Merchants?

March 18, 2008

After reading the Visa, Inc. IPO Risk Factors, we wonder whether investors will actually stop by and talk with the millions of merchants, companies and organizations which are forced to accept MasterCard and Visa – the two control a whopping 80% market share of all electronic payment processing solutions.  For us, the key word is “Interchange” and the below thousand plus news and commentary postings by WayTooHigh.com provides just the start.

Visa and MasterCard Adjusting Interchange Rates

“Visa, Inc. FORM S-4 SEC Registration Statement” (click here to view the SEC filing)

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Want to know more about lead plaintiff ScanMyPhotos.com?  Click here and read their daily blog: Tales from the World of Photo Scanning


What is the Federal Reserve’s Role in the Visa IPO?

March 18, 2008

Is it just a coincidence that the Federal Reserve is expected to implement the steepest rate cut in nearly three decades just hours before the planned Visa IPO?  

Today’s market turmoil [Paulson admits U.S. economy in sharp decline] was just handed carefully crafted rose-colored glasses to wear.  But, it might crack tomorrow and lead to one more financial woe, as Visa Inc. investors get caught as the melodic music stops and there are fewer chairs left in the game.


Why Should The Public Bail Out Visa and the Banks?

March 17, 2008

With millions of families forced to vacate their foreclosed homes due to unchecked greed by the banks and financial institutions – dispatched from their oversight responsibilities, in just two days the public is poised to again bail out the banks.  This just hours after the Federal Reserve handed out billions in public fund to bail out Wall Street.  Now, round two. 

The banks which own Visa, the largest credit card association, are again moments away from scoring another multibillion dollar windfall.  No, they are not getting the funds by raising interchange rates – that is scheduled for April 1st. 

Instead, the pubic is lining up to hand over billions to the thousands of banks looking for their next fix.  This time, the ill-advised investors are not studying the SEC documents and catastrophic risk factors that could lead to Visa’s insolvency.  These are not our words, but Visa’s – click here.

With the record number (nearly three times the previous high) of visitors to WayTooHigh.com – The Credit Card Interchange Report, today signals a shift in philosophy.  Today, more people are being cautioned that if our merchant interchange litigation is successful, it could lead to the demise of Visa.  Or, will the Federal Reserve then step in and refund investor’s losses?

Eroding Confidence Stings Bank Shares” – IHT


Visa Inc. IPO Update

March 17, 2008

Although it is just our opinion that the Visa IPO will be derailed, we still assert that potential investors are still hypotized with the same exuberance that Bear Stearns’ chairman, James Cayne possessed when playing in the recent North American Bridge Chapionship in Detroit. 

According to The Wall Street Journal, Mr. Cayne was away from a cell phone and email during last summer, during the firm’s impending fiscal crisis.  Even our company, ScanMyPhotos.com is always accessable with iPhone, 24/7 Live Support and other tools to provide instant access.

In the case of Mr. Cayne, as quoted in the Journal [“Cayne on Golf Links, 10-Day Bridge Trip Amid Summer Turmoil”] by Kate Kelly [Nov 1], “[a]ttendees say Mr. Cayne has sometimes smoked marijuana at the end of the day during bridge tournaments.”  In the case of what might turn into an oversubscribed Visa IPO, unless Visa pulls the plug, we can’t help but ask what the new shareholders are also smoking? 

The IPO, along with its risk factors represents a new vanguard of greed in the eye of the financial markets’ tornado-like storm.

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Want to know more about lead plaintiff ScanMyPhotos.com?  Click here and read their daily blog: Tales from the World of Photo Scanning