Visa Starts Shareholder Talks For Potential Exchange Offer For Class B Shares
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Transcript
00:00 Mitch, what's going on with Visa?
00:02 - Disaster stock of the day.
00:03 Visa is considering conducting an exchange offer
00:07 for its class B common stock
00:09 to release transfer restrictions.
00:11 These changes aim to align class B common stock
00:14 in arrangement with class A and class C,
00:17 particularly considering exposure to certain litigation.
00:20 The proposed amendments require approval
00:23 from the majority of outstanding shares in each class,
00:26 but if approved, the exchange offer
00:28 would allow class B stockholders
00:30 to convert a portion of their shares
00:33 into freely tradable ones, initially up to 50%.
00:37 Visa has settled the majority of litigation
00:39 related to class B shares amounting to 6.48 billion.
00:44 - Down $6.83.
00:47 This is a significant hit for Visa.
00:49 You don't often see it go down that much.
00:51 So they're obviously worried about sellers
00:53 coming into this market
00:54 and they're getting ahead of it here.
00:57 It's pretty ugly and it's been pretty much
00:58 straight down, Joel.
01:00 There isn't like this has been shopping around and bouncing.
01:02 This has been a steady selling here,
01:04 like steady Eddie seller here,
01:06 the entire after hours and the entire pre-market session.
01:09 And it's sitting near the pre-market lows here.
01:12 I'm not gonna try to catch the falling knife on this one.
01:15 - I think the setup in this one is,
01:17 here's a stock very close to an all-time high, right?
01:22 Market's not at an all-time high.
01:25 Still, things in the market to figure out.
01:30 And what the street is saying here is,
01:32 insiders are thinking of selling.
01:34 I don't know how they're doing it,
01:35 if they're doing it with their class B shares
01:37 or whether they're doing it,
01:39 but the market is taking an indication
01:40 that the big money wants to sell.
01:43 And that's the way they're treating it.
01:46 Now you're down to 241, you're down 6.83.
01:50 This is a pretty good moving stock.
01:53 Not great levels to lean on here.
01:56 I think the first one that you haven't hit yet
01:58 is at 239.36 at your August 24th low.
02:03 So maybe if you have a short,
02:05 wanna see what happens at that area.
02:07 But it doesn't feel at least not at this point,
02:11 just like, okay, we're just buying.
02:13 No matter what goes on, we're just gonna buy the dip.
02:15 At this point, it doesn't feel that way.