$7.65

0.98 (14.69%)

11/21/2008 4:00 PM

Discover Financial Services (DFS)

CAPS Rating:

The Company is in the business of credit card issuer and electronic payment services.

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What the Community Thinks

Total Members

421 Outperforms

90 Underperforms

All-Stars

72 Outperforms

43 Underperforms

Wall Street

7 Outperforms

2 Underperforms

Members bullish on DFS are also bullish on:

Members bearish on DFS are also bearish on:

Ticker Tags

Consumer Finance (42), Mid Cap (425), Credit Card (10)
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Discover Financial Services At A Glance

Current Price:	$7.65
Last Trade Time:	11/21/2008 4:00 PM
Open:	$7.11
Previous Close:	$6.67
Daily Range:	$6.63 - $7.76
52-Week Range:	$6.59 - $19.87
Volume:	11,164,572
Market Cap:	$3.20B
P/E Ratio:	7.02
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Stock Trends

DFS VS S&P 500 (SPY)

News & Discussion Boards

Other News Headlines for DFS

Premarket roundup: Yahoo, credit cards
11/18/2008 9:03:00 AM - AP
Ahead of the Bell: Credit Cards
11/18/2008 8:22:00 AM - AP
Credit card interest rates fall 4th-straight week
11/17/2008 4:56:00 PM - AP
Sector Snap: Credit card stocks fall
11/17/2008 1:52:00 PM - AP

More Headlines...

Top Bull Pitch

Recs

12 Discover Financial Services (DFS)

Avatar Ozcutty (44.43) Submitted: 2/27/08 7:58 PM

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 network
3. It owns the pulse network
4. Its buying back $1b woth of stock
5. It has just started partnering with banks to issue debit...More

Replies: 7 | Reply | Permalink

Top Bear Pitch

Recs

5 Discover Financial Services (DFS)

Avatar TMFDeej (99.65) Submitted: 5/13/08 11:02 AM

No it's not the sound of the rotors on Ben Bernanke's magical money-dropping helicopter. It's not the sound of Hillary's chance of becoming the next President of the United States being flushed down the toilet either. That's the sound of millions of Americans using their credit cards to help them ...More

Replies: 0 | Reply | Permalink

No it's not the sound of the rotors on Ben Bernanke's magical money-dropping helicopter. It's not the sound of Hillary's chance of becoming the next President of the United States being flushed down the toilet either. That's the sound of millions of Americans using their credit cards to help them pay for increasingly expensive things like food and gas now that they can no longer use their homes as ATMs.

According to a report issued by the Federal Reserve late yesterday, total seasonally adjusted consumer debt rose by $15.2 billion to $2.56 trillion in March, a 7.2% annual rate (see article: U.S. March consumer credit up $15.2 bln, or at 7.2% rate). This is the fastest rate that consumer credit has risen by since November. Specifically, consumer credit-card debt increased by $6.3 billion to $957.2 billion in March, up 7.9%. These numbers raised the total increase in consumer credit during the first quarter to $34 billion, which is the highest level for any quarter since Q1 2001...which not coincidentally is the last time that the U.S. economy was officially in a recession.

Consumer spending has held up slightly better than I had expected over the past several months, though not as well as the government would like us to think it has. Perhaps this is because consumers are racking up all sorts of credit card debt. If so, something is going to eventually have to give. Consumers are going to either slow their spending as their credit card debt becomes too scary or they max out their cards or they are going to begin to default on their credit card debt.

Many people have been anticipating that credit cards will be the next domino to fall in the credit crisis. According to a study compiled by Bloomberg (see article: U.S. Consumer Debt Rises More than Forecase in March) overdue credit card payments at the six largest U.S. lenders have reached their highest since November 2004. For those of you who are interested, these companies are American Express (AXP), Bank of America (BAC), Capital One Financial (COF), JPMorgan Chase (JPM), Citigroup (C), and Discover Financial Services (DFS). Some of those might make a nice CAPS short, with COF and DFS probably being the best (or worst in this case). I may have to see if I can end a couple of my two hundred live picks and give them the old thumbs down.

Deej

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Recs 0 (DFS) phwting (73.98) Submitted: 11/14/08 3:45 PM : Start Price: $9.72 DFS Score: -6.07 Cash on hand worth $20. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (DFS) OtherOracleOfOMA (66.52) Submitted: 11/04/08 12:54 AM : Start Price: $12.33 DFS Score: 14.66 Let's assume for a moment that you stand on a corner and offer to loan strangers money at 19% interest, with nothing to back that up but their promise to repay, and all while they know full well that if they don't pay you back, there's nothing you can do but put a note on their credit report. In making decisions about how much to loan to whom, you also don't verify their stated income or employment. How much of the money loaned out do you think you'd actually get back? That's a rhetorical question, but it's also the business model of DFS, COF, C, and other credit card issuers. To view things from a different perspective, lets say you're a typical middle-class American in the Bush/Greenspan economy (or what's left of it): you're under water in your mortgage, you haven't gotten a raise in 5 years, and though you try to not to, the inexorable upwards march in your cost of living means you find that you have to float some of your expenses on your credit cards every month just to pay for the basics. Now the credit card companies are lowering your credit limits and raising your interest rates. But, you still think you can make minimums until today, after you just learned that you're getting laid off, and that since Bank of America just lowered your credit limit, your credit rating has been downgraded, and that 13% fixed rate you thought you had? Oh, well that's now a 26% variable rate. Turns out the credit card issuers are the only companies in America who've been granted the privilege by the federal government to arbitrarily change the terms of their contract with you at any time, for any reason or no reason at all, with the changes being applicable not only to new debt, but retroactively on money already borrowed. You're handed your last paycheck and a month of severance pay. What do you do? Do you use the little money you have and keep paying the minimums, hoping against hope that you can find another job during a recession before you're completely tapped, all so you can go back to handing the legalized loan sharks 35% or more of your take-home pay every month in interest? Or do you take the rest of your available credit, max out your cards to stock up on essentials, stick the cash you have under the mattress, and say "screw the credit card companies, my family comes first. If these usurers can just up and change the terms of our deal, so can I." I think the only question here is whether or not you just stop paying and ignore the bill collectors' calls; or if you cut up your cards and send them in in lieu of your next bill, along with a tube of KY and a note telling them where they can shove their arbitrary rate hikes, universal defaults, and $50 charges for sending your payment in 3 days late. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (DFS) nocemployee (71.30) Submitted: 10/27/08 8:53 PM : Start Price: $10.75 DFS Score: -15.20 This is solely based on the positive outcome of the Visa/MC lawsuit. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (DFS) Wharton93 (91.85) Submitted: 10/22/08 5:43 PM : Start Price: $10.13 DFS Score: 8.29 credit cards = next big bang Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (DFS) goofyfool (91.81) Submitted: 10/15/08 2:54 PM : Start Price: $15.22 DFS Score: 6.93 Discover gets 98% of its revenues from credit cards, and that's the next thing that will go bust, big time. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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Wall Street

Results 1 - 9 of 9

picks per page. CHANGE Expand All Pitches Collapse All Pitches

Top Pick	Member Name	Member Rating	Start Date	Call	Time Frame	Start Price	Stock Gain	S&P Gain	Score	Pitch
	TrackHAndW	< 20	06/16/08		5Y	$15.43	-50.42%	-44.36%	-6.06
	TrackChrisDavis	< 20	06/03/08		1Y	$16.31	-53.10%	-45.56%	-7.54
	TrackCalyonSec	< 20	10/26/07		NS	$18.37	-58.36%	-50.45%	-7.90
	TrackEveillard	85.91	09/30/07		NS	$20.40	-62.50%	-50.30%	-12.20
	TrackJohnKeeley	< 20	09/30/07		NS	$20.40	-62.50%	-50.30%	-12.20
	TrackRichPzena	21.48	09/30/07		NS	$20.40	-62.50%	-50.30%	-12.20
	TrackCitigroup	< 20	07/24/07		NS	$25.05	-69.46%	-50.47%	+18.98
	TrackJimCramer	85.65	07/09/07		3W	$25.05	-69.46%	-50.44%	+19.02
	TrackPatDorsey	78.14	07/06/07		5Y	$25.15	-69.58%	-50.42%	-19.15

Results 1 - 9 of 9

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