Visa Starts Shareholder Talks For Potential Exchange Offer For Class B Shares

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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.

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