This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Visa Options; a New Favorite; 'Green Eggs and Ham': Best of Kass

NEW YORK ( TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among the posts this past week were entries about Visa's call options, Northwest Bancshares and a Dr. Seuss classic.

Please click here for information about subscribing to RealMoney Pro.

Monitise Update: Visa Weighs Its Options
Originally published on Friday, Sept. 27 at 10:24 a.m. EDT.

Visa (V) owns two separate options on Monitise (MONI.L):

Six million shares that don't have a date attached; and 43 million shares that are exercisable until August 2014.

The six-million-share bucket was exercised yesterday (see below description). From my perch, it is a good sign that Visa exercised this bucket early.

It is hard to believe that the second tranche of call options (43 million shares) won't be exercised in due course. (I don't know why Visa would feel a need to exercise early.)

Here are the descriptions of the two options tranches:

  • Sept. 27, 2013 -- 6 million options

    Application has been made for 6,000,000 new ordinary shares of 1p each in the Company ("Ordinary Shares") to be admitted to trading on AIM ("Admission") pursuant to the exercise of warrants granted to Visa Europe, as previously announced on March 6, 2013. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in the Company and it is expected that dealings in these new Ordinary Shares will commence on October 1, 2013.

  • March 6, 2013 -- 43 million options

    At the same time as the Agreement for this extended commercial partnership is entered into, Monitise will grant Visa Europe a warrant to purchase 43m ordinary shares of 1 pence each in the Company ("Ordinary Shares") at a price of 36.25p per Ordinary Share, representing the closing mid-market price of March 4, 2013.

    This warrant will be exercisable from the point at which the Agreement is entered into between Monitise and Visa Europe until August 4, 2014. In addition, the Company will grant Visa Europe a further warrant to purchase an additional 6 million Ordinary Shares at a price of 1 pence per Ordinary Share, being the nominal value.

    At the time of original publication, Kass was long MONI.L.

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV


    DOW 17,712.66 +34.43 0.19%
    S&P 500 2,061.02 +4.87 0.24%
    NASDAQ 4,891.2190 +27.8570 0.57%

    Our Tweets

    Partners Compare Online Brokers

    Top Rated Stocks Top Rated Funds Top Rated ETFs