Add a New Bulls Reason

Company: Capital One Financial (COF)
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7 votes

  Increased efficiencies result from Capital One's acquisitions integration.

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.

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4 votes

  Best-in-class credit policy; ample cash; deposits to back loans

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.

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2 votes

  Capital One is poised to capitalize on consolidation trends

Capital One is poised to capitalize on consolidation trends continuing across several financial markets.

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3 votes

  Rise in spending and average balances will cause strong receivables growth

Credit card spending and average account balances are set to rise, and we should see strong receivables growth.

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