I was saying short this around 103-104 area, dropped below 100 but today they bought it back up over 102. SHORT MA, going to the low 80's.
Did anyone hear the congressional subcommittee on Credit Cards that took place on Wed.....Once again the importance of knowing what congress is up to when investing for the long run...Bloomberg and C-Span always on the tubes...The bottom line is that Credit Card companies will face much stricter policies in regards to fees....(Credit Cards are the most profitable financial lending service in regards to margin)...What I got out of the congressional hearing was that the Fee policies that ALL Credit Card companies have were completely unfair and that legislation will be brought to limit FEES such as (OVER THE LIMIT, LATE PAYMENT, PAYING LESS THAN THE MINIMUM AMOUNT, TRAILING INTEREST, INTEREST ON FEES assessed, PHONE PAYMENT FEES and many more) have been abused at the same time they are in ANTI-TRUST violations for PRICE collusion on certain FEE assessment's.....WOW can you say a margin crunch....If memory serves me correct 78% of all profits are from FEES made by credit cards....Heck they even pay COLLEGES to solicite on a state run campus!!!!!!(Almost every campus in the country gets a payment to put their graduates into debt......I wish someone would IPO a college bar located in every college campus....If you do own a major like BAC, C, JPM...(The three largest providers I don't think this will really impact the numbers, but could effect growth) MA and COF I would be more careful about!!!!!!!!!....No telling who will get paid off to be lax on these policies when the bill comes to pass, but the the Dems. in the Senate sounded real serious about sending the Credit Card Providers a real message that this was an unacceptable lending policy and they WILL LEGISLATE, because market forces have only created an ANTI-TRUST type policy of collusion.....You should read the Text of the subcommittee if you own a small player in the GET YOU INTO DEBT services.... $COSTAverageMAN
next yr earnings are 4.90... almost 22 forward pe. 17% growth rate. a little pricey, but not ridiculously overpriced as the fast money guys would have you believe. and if america goes goes underwater with its debt, maybe their margins will increase. who knows. If you want real crazy PE, look at CRM. wall street seems to believe in that stock's growth rate though.
Nice post, good info. Recently closed an Orchard bank 0% card cause of their absurd Indian offshored customer service and their refusal to examine why I'm getting double charges on large purchases. They charged me $3.50 closing account fee. A few bucks, so I don't really care, but that's really ballsy of them. I would actually pursue it but I hate dealing with Indian retard customer service. A lesson to never do business with HSBC.