Good comments. Probably neutral overall assuming cards are used for other purchases besides gas. DFS is growing their loan business so rising rates are likely to benefit margins going forward. In this regards, DFS is unlike V and MA that explains a part of the reason this is valued differently by Wall Street.
They announced that they are looking at strategic alternatives in regards to manor care. I read that as selling most if not all of the real estate. This will derisk the portfolio and give opportunity to invest in other than SNF like the ones manor care runs. IMO in 12 mos manor care will represent about 10% of the business or less. The bump in price comes when sell of manor care assets is announced. Still think there is room to fall more, but I'll continue to add. I'd be worried about HCP if there was weakness in other areas of their portfolio, but absent HCR it is running on all cylinders.