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The Company is in the business of credit card issuer and electronic payment services.
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Ozcutty (44.45) Submitted: 2/27/08 7:58 PM : Start Price: $14.16 DFS Score: -5.02
I am heavily invested in this stock. Mainly because I see so many positives going forward. This include:-1. Its a spin off, with all that entails 2. It owns its own network3. It owns the pulse network4. Its buying back $1b woth of stock5. It has just started partnering with banks to issue debit cards (growth area)6. Won litigation against visa and mastercard which opens up the market, they will also probably get a nice settlement cheque soon.7. I see its small market share as an opportunity for growth8. It is an aquisition target in 18 months9. Its just sold its dodgey loss making uk businessThe only negative I can see is rising deliquences in a reccession, although it generates enough cash to ride that out.My hope is that the ceo can capitilise on all the positives and push the share price nice and high before any takeover.
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Ozcutty (44.45) Submitted: 4/16/08 8:02 PM
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Discover also just picked up DIners Club for $165m. What a great deal. Now they have access to a global network of 8 million outlets. Also they are not taking on the credit risk, just running the network. This is a brilliant aquisition. What were citigroup thinking when they agreed to this? the network is where the real money is and discover just picked it up for a song.
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cannyban (< 20) Submitted: 5/07/08 9:23 AM
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Discover also have an agreement with China Union Pay, one of the largest Banking institution in china, to be able to provide credit cards acceptance whenever a chinese citizen that come to the states with it's credit cards to do purchase. the price right now is low enough for people to buy Discover heavily if they were out of luck in purchasing VIsa or MasterCard stocks.
painterflipper (< 20) Submitted: 5/11/08 1:17 PM
That would be a huge mistake - to credit Chinese customers (it would be a desperate measure, I totally disagree, it would lead to bankruptcy 75%)
cannyban (< 20) Submitted: 5/13/08 10:44 AM
painterflipper, you looking at a wrong pictures of Discover agreement with china union pay. Discover agreed to process cards issued by China union pay to it's customer outside of china for ala when those chinese come to the US for a visit, all cards transaction will go through Discover payment network, and Discover only collect fees for the transactions. China Union Pay only issued Debit cards to it's customers and those who can afford to travel outside of china are well off financially, and it doesn't hurt that CUP is one of the top 3 banks in china.Risky, i don't think so.
colonelnelson (93.44) Submitted: 9/06/08 9:40 PM
This is an excellent pitch. Thank you.
Ozcutty (44.45) Submitted: 10/03/08 7:23 PM
Buy now at $11. Bailout should give stability and rates will come down, this means bigger margins for DFSI won't promise it won't go down a bit more but in a few years should be much higher. Court case against MA starts October 14th, any settlement in dfs's favour will move stock price up.
Ozcutty (44.45) Submitted: 10/24/08 1:26 AM
Court case is settled, more millions heading DFS's way, but stock price barely moved, whats going on? Wall st doesn't get DFS, sure it holds debt but what about the transaction fees, atm fees, foreign currency fees, debit cards? these fees and volumes just keep rising. Also the pulse atm network is the ultimate cash cow business.Interest rates are coming down which help to offset charge-offs. They stated in there last conference call that if they can't borrow at the terms they want, they will use their deposit base from Discovery Bank.
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