Visa IPO Brings Value, For Now

3/19 - "There are several good reasons for investors to take to the stock -- which I outlined on Tuesday -- and now I'd like to flip things around and look at some potential concerns."

"$10.2 billion of the company's IPO proceeds will go to redeem shares held by member banks such as JPMorgan , Bank of America, Citigroup , and Wells Fargo...Those payments have been a powerful incentive for banks to keep Visa as a client. Once they're paid out, the incentive vanishes...Over the past five years, Visa has paid out $4.3 billion in litigation provisions, or 28 cents on every dollar of revenue it's brought in."

"...unlike the previous recession earlier this decade, which hurt business spending but was supported by consumer spending, a recession this time around could hurt the consumers that Visa depends upon...The volatility could swing to the negative side at any momen...