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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.

Playing the Market as Delinquencies Continue to Rise

Despite general consensus of negativity on financials , I would not short most of them and certainly not DFS which is undervalued and could spike from 6$ to10$ in one minute if it annouces a favorable settlement with MA and V.

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.