To recap I sold TEX @30 on April 25 and bought COF at 58. Since then well we know how much better I have done.
Anyways COF reported a monster quarter $1.1B which is what I got as their normalized profitability estimate and MY ESTIMATE ISN'T GAAP!
They just did GAAP $1.1
So my estimate adds back intangible asset amort of 167 and warranty provision of 183.the 183 is added back since I took their charge to tangible book value in my valuation for my estimate of their warranties. I also don't think this wll be recurring much longer.
On top of that they have $50M of restructuring per quarter going down to basically $0 next year.
So you have a way that COF earns close to $6B annual and its trading at $40B. Its buyng back lots of stock gong forward. So you're buying back stock trading at 50 cents on the dollar.
All said I think its worth $120++++++++++++
So I am quite bullish on COF as I said my favourite investment 2 months ago and still my fav