Comments on: Capital One – More Bull#*! Analysis

By: soonerxii

soonerxii — Fri, 18 Apr 2008 02:08:08 +0000

Going short at 35 will still be a good idea. Going short at 15 might be risky.

By: Andrew Horowitz

Andrew Horowitz — Wed, 16 Apr 2008 22:00:26 +0000

Mark:

Look at the original dates of the COF short. This was a supporting document/analysis.

By: Mark

Mark — Wed, 16 Apr 2008 18:21:31 +0000

All good points. Only problem is the market isn’t as dumb as you think. It’s already pricing in recessionary levels of charge offs and it’s also pricing in a 20-25% earnings miss this quarter. Going short on COF at 55, great idea, going short at 46, not so smart.

By: Shannon

Shannon — Tue, 15 Apr 2008 23:51:51 +0000

I’m a Capital One customer and have their “No Hassles” “Fixed for Life” 9.9% APR (purchases, transfers and cash) card. Then, I apparently died and the “Fixed for Life” became 15.4% (23% for Cash). Well, with my credit score, I don’t pay 15.4%.

So, I paid off my balance (mostly transferring it to another card) and kept the card in a drawer. (Calling them and asking them to reduce the rate was to no avail and I was told that ‘raising the rates is the trend’.) Sure enough 6 weeks later I get a 0% for 18 months w/ 2% transaction fee.

Stupid. They didn’t want 9.9% (plus making money in merchant fees as I used the card), but they’ll take 0% (o.k. 1.33% if you figure the 2% transaction over 18 months).

So, I transferred the money back. So instead of paying them 9.9% I’m paying an effective 1.3% (the trick is to not put other charges on the card). I just checked my statement today and they’ve ‘reduced’ my normal purchase rate to 12.9% without me even asking. Wow, how nice of them.

Yeah, short this stock all the way to the dairy.

By: Ian

Ian — Sat, 12 Apr 2008 21:19:26 +0000

Very interesting stuff. I read the previous article relating to the UK (I live in the UK). Its very true – for years credit cards have have almost been an accepted norm, any Tom, Dick or Harry could get a dozen.
There was/is absolutely no real stigma attached to them now.

Its pretty common knowledge that the Capital One card has always been considered the easiest card to get…. I can remember a friend saying to me “They will give them to anyone” where i was looking for a CC for buying things safely off the internet (they offer more financial protection).

This is where we are at in UK : House prices are through the roof, mortgages are going up, we are taxed to the hilt and everyone has got lots of credit card debt here…

By: upsidetrader

upsidetrader — Fri, 11 Apr 2008 23:54:58 +0000

joe lewis the “smart money” dude sold puts to help finance his BSC debacle- I’ve been saying for awhile that credit cards and auto payments will be the next shoe to drop- love the short too and a great site

upsidetrader