CREDIT CARDS, FUNDAMENTALS, INVESTING, MARKETS/ECONOMY, STOCKS, TECHNICALS

Dare it is. CapitalOne

DECEMBER 21, 2019. Dumpster diving defensive plays for bargains now is a fruitless folly. But we want a bargain. “You know what a bargain is? Buying nothing” David Faber. Well, that’s actually called saving. Is it time to save?
Always, and it’s also time for value. Can you smell the building rotation? It’s back to growth yo, soon. Think 266,000 November jobs and repeat all-time highs for all three indexes. Smell it now? The savvy never argue with jobs, rotations, or real bargains. Know any? Capital One?
Over three months we’ve witnessed the financials transform from a gaggle of dopey nappers into shimmering stars. Yup. Bam. Institutional money squirts like that. Witness the big banks. Jamie’s JPM used to sell for 1.6x book–buying with both hands yo. Now it cool-glides somewhere above the clouds in a hushed grace, all a fatter 1.84x book. Up 16%–three quick months.
And others? Skank of America? Better back up. BAC; up 17.7%, three rolled months. Only the hooks of a claw hammer rakes our wallet out for BAC’s price now. Even the still grab-asstic criminal stage coach known as Wells Fargo has creaked forward 9.8%. Wells is now more expensive than enticing. We know. We’re still attempting to hatch a pile.
Once bargains roar they’re no longer bargains. A few become parables, while the rest simply become pricey. Any rotation-driven move up creates a bit of multiple expansion. That’s unless company fundamentals also improve. Most don’t. All up moves have only so much gas. All that’s where we’re at with Capital One. COF is now one of the top 10 largest lenders in the U.S., and has more than 520 bank branches, mainly in the east. Bank deposits mean better funding, and more security. It’s not just a card dealer. It’s up. It’s value, and it pays. Is that enough? STOCKjAW looks deep to see…”Dare it is. Capital One.”

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