Capital One Financial Corp. (NYSE:COF)
A diversified financial services company whose banking and non-banking subsidiaries market a variety of financial products and services.
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Good price for a great company.
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Extremely supressed PE partially caused by pending merger. Success of its diversification strategy will pay off in 1-3 years.
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Undervalued vs. it's peers
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They're not exactly a prime lender, but they have very catchy marketing, and they get plenty of fees out of their clients.
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Capital One is not just about credit cards anymore. The IBS system that helped them become so strong in credit cards will help them with mortgages, car loans, student loans and small business loans.
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Has been beaten up.
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Is looking cheaper now than it has in a while.
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COF is a long-term winner that thinks differently from other credit companies. Recent weakness in the stock provides an entry point for building a long-term position.
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Consensus of dead consumer and concerns surrounding upcoming NorthFork merger have smacked the stock down $20 to it's lowest point in 2 years. Clouds should clear by early 2007 and stock has upside to $100 by 2008.
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Acquisitions of Hibernia and North Fork appear to be going well, giving access to cheap capital for growth, access to traditional banking customers, as well as diversification of credit risk
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i love the acquisitions of hibernia and north fork. from primarily a credit card player, cof has expanded into housing finance, auto finance, and banking. the nfb acquisition will trim their borrowing costs significantly - best of all, this stock is extremely compelling from a value perspective.
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Capital One Financial has underperformed
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Well-run company with a great history.
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