Gee Dennis, I sure don't know the answer to that one. Or to the feds willingness to keep interest rates low. I got out several wks ago @ 25.43. I was second guessing my decision to do that until today. Would love to get back in and right now the price seems right but will hold off until I read what it go down so much today.
Anyway the price seems right if the core earnings will support the dividends.
If for US taxpayers there is a dollar for dollar tax credit to offset Netherlands tax on rds-a dividends, why would that taxpayer ever want to pay the higher price to buy rds-b instead of rds-a?
Yes and you are right. That UTI is a significant 2.26 per share. My concern though was that only 49 cents of the 75 in core earnings was identified as belonging to the common stock. If that trend continues, that would tend to make EPS only around $2 for the year. Correct me if I am wrong.
Wiping the egg off my face, I just realized those percents the article quoted considered total earnings not EPS. So obviously they did not consider the share buy backs that had taken place. That seems wrong to me. Oh well (heavy sigh).
Is it my arithmetic that is all screwed up?
doesn't 1.21 x 1.035 = 1.253 not 1.33
and doesn't 1.33 / 1.21 = 1.099
so isn't the increase closer to 10%
Also of interest, the consensus according to tdameritrade was 1.12 and stated earnings were 1.33, so it beat the consensus by almost 19 pct (1.33 / 1.12 = 1.1875)
Yahoo estimates etc were all messed up, perhaps because of the FY change
Correct me if I'm wrong.
That was the qtr that COF wrote off over a billion bucks of bad debt from that cc portfolio, that they had acquired from HSBC. That sure made, and still makes, EPS(ttm) look worse than it otherwise would.
That should straighten out next quarter when scd qtr 2012 falls off the charts.
I think we are just those several days from seeing COF ;wake up with a vengeance.
I hadn't checked book value in a while. Thought I would share that; it's impressive still.
Good luck longs..