With managers experienced with integrating new acquisitions, the smooth integration of Capital One's newly acquired Hibernia and North Fork franchises will greatly increase operational efficiencies across all of Capital One's business segments.
COF charge-off rates are growing slower than rivals like AXP, even though COF and AXP target two different spectrums of the market - which shows COF's strong business model.
COF virtually bought the entire Chevy Chase bank in cash ($400M+), and its book value today is $26bn with market cap less than $4bn;
COF is getting pounded due to negative sentiments, but even if charge-off rates double (which is almost impossible, as charge-offs will stablize as unemployment rate hits a peak at 10-12% at max), the bank's market value should be more than it is today.
Look for COF to cross $15 very quickly, and $25+ in 1-yr.
