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Discover Financial: A Creditable Investment - Barron's

User 138602: I understand your frustration with DFS stock price and that you gave up because I went through the same feeling but I sold only a small portion of my stake so far to respect my margin restrictions.I can comfirm you that no settlement has been announced since I follow that stock on a daily basis and would have heard of.My understanding is that DFS is seeking 6 billions$ and that the trial should begin this month if there is no settlement before. To Gigs:You are right with your math but these numbers are those mentionned in Barron article.When I read that article I noticed that too,I think Ryan was talking of a premium of 60% to 110% which appears much more realistic given the low price of the stock.

Discover Financial: A Creditable Investment - Barron's

I mentionned several times in my comments here that DFS was outrageously undervalued.Now that Barron wrote this article, I hope it will help DFS stock price but have hesitation since this market is crazy and sick, though longer term DFS is a sure bet according to me. More, in their article they even not mentionned the potential settlement with MA and V that I beleive will be annouced soon and may represents several billions$ for DFS and alone add between 4$ and 10$ to the stock price.

AmEx's Pain Likely Discover's Gain

I do not know if DFS will take advantage of AXP problems , but I am sure they will do great in the future and that DFS has more possibilities for growth than AXP which is already so big.With respect to analysis and analysts doing them , I say their are generally useless and mislead investors.You all know that analysts change their opinion and recommandations as easily and often as Jim Cramer. DFS will prove all them wrong in the next quarters and years.DFS rocks .

Five Great Businesses Currently on Sale

I agree with most of what you say in this article, with the following exception , and my favorite stock is DFS for the reasons mentionned above , those mentionned in your previous articles and many more.Now the exception , I entirely disagree when you say that Chinese economy is a bubble ready to pop and your analogy with Japan.The Chinese economy has even not started to blossom , we have seen nothing yet.The place to invest for the next decades is CHINA and that is why US companies are still rushing to China . COMMON ON FRANK , China and India grossly represent hafl of the earth population and are just beginning to develop their internal economy , eventually they will consume the products and services they manufacture and that has already begun , wich means less dependant on exports.By the way China ALREADY exports less to USA and most of their exports are products which sales will not be affected by a slowing US economy or even a recession.

Winners and Losers from the Mortgage Mess

DFS is already priced for the end of the world, so I see only upside for this stock BIG TIME.

How Much Credit Is Too Much? Where AmEx Went Wrong

I noticed from yesterday comments as well as the first one today that many commenters are aggressively attacking DFS. I do not know why.Is it because your darling stocks ( V and MA) stopped sky-rocketing and may even start nosediving in the future? Whether you like it or not DFS is no longer a small player and will grow much more rapidly than other players in the industry because DFS has a very good management knowing where they go.It is absolutly false that DFS is targeting low FICO , they simply manage their risk in a more conservative way.Do not forget that estimated revenues this year for DFS are around 4B$,for MA 5B$ and for V 6B$.Last quarter DFS earned .48 per share while V earned .58. Not so bad for a company that its cc is not accepted anywhere and has only poor clients.Anyway , keep buying your darlings and I will keep buying DFS.

Card Issuers: Facts and Fictions

Thank you Frank,finally a person talking with his head and objectivity.So far the brainless analysts,except MS analyst, have constantly tried to demolished DFS with their stupid recommendations and ridiculous price targets.I am a believer in DFS business and prospects like the third-party payment segment , their recent acquisition of Dinners Club and the fact they got rid of their money losing business in U.K.DFS is extremely well capitalised ,may the best in the industry , and remained very profitable even in this though environment.It is presently selling at its book value ,so the market gives almost no value to its healthy credit card business,its fast growing third-party segment and the billions they will probably receive from V and MA as settlements.DFS represents a great investment for long term investors. I have got nothing against V or MA but it is true that they are only intermediaries created by banks and their only real assets are their goodwill.