I bought in 2009 @ 14.88
I bought this stock because I had their card and was impressed with their customer service. Also, from there on they have been expanding their services constantly. I like this stock a lot and it is one of my best in my portfolio
DFS was a spinoff of Morgan Stanley back than.. I recieved 100 shares and bt an additional 250 and decided to hold it. During that period everything was different than it is today.. I don`t intend to sell DFS and it will remain in my port for years to come.. I`m looking at SYF now...
DFS went public around July, 2007.
What attracted you to DFS when you did buy it. Just considering there were other stocks to choose from.
I'm excited about DFS in 2015. Lots of possibilities like CurrentC plus the return of the US consumer big time. I hope $75 is more like the middle of 2015 than the end.
:) Spot on. Discover is a very sound investment. I'm a proud owner of their stock & client w/ credit card & banking. Very Happy with Leadership (growth & vision) & Management of current resources & productivity. Outstanding service and very disciplined business plan. Far better than the chaos and complexity at visa & mastercard.
Cheers to your "very right" analysis.
DFS is a buy at any dip. It trades in a perfect trend. Do a 5 year chart draw 2 lines. One for Lows & One for Highs. Trust that trend. That would of had you sell at 65 and buying back at 61ish. The next sell point is 70ish. The rewards issue was planned not a big deal, the banking growth will improve the margins and continue the ongoing growth.
I'm a huge fan of them entering the banking world. A huge chunk of my savings went into their .85% savings account. What an awesome offer.
Just think how much of an advantage they have over the standard banking model, & how beneficial it is for those who hold their money with them.
Discover doesn't have the overhead challenges of standard banks. Employees, Buildings etc
Discover is at nearly every ATM machine already w/o cost to them.
Discover already has the best online credit card management system that was easily parlayed into banking.
The list goes on and on.
But most important they now have a funding mechanism for loans using the banking deposits held to rationally lend out to their credit cards, personal loans, car loans etc. They are getting this money extremely cheap being a bank and have huge demand. That demand pays a very favorable rate that will now enhance the margin on the cost of money.
This will play very favorably for the growth & margins of Discover. A company that has been managed well & that trend continues. What's exciting is that they are starting to leverage their client list providing them beneficial products and services & doing it right. Fits me the client, the investor & the business :) LONG DFS
So DFS management, which has been very disciplined and successful, see revenue trends improving and getting much better next year. As a result, they plan on some additional investments. They guide on expenses, but not revenue. So now the analysts just see increasing expenses and start cutting earnings estimates and price targets. They just grew Q3 earnings at 14%, economics trends are getting accelerating and yet analysts see 5% earnings growth next year...? Great buying opportunity here...
Looks like a big overreaction to me. COF actually missed earnings and within three days had made back the decrease from the announcement day. I thought the 2015 commentary was balanced to good - i.e., good growth prospects versus some minor cost increases.
Many people (maybe not all...) tend to get bank services such as credit cards, car loans, safe deposit boxes, and so on, from the bank where they have their checking. Free checking accts are leaders to get customers in for other services which pay off more handsomely. I've had a free checking acct from a major bank for 25 years now - but that bank also sells me 2 different credit cards and a safe deposit box. So, their free checking acct has piad off for me and also for them over the long haul. I think Discover's strategy is a good one for future business.