Tuesday, April 21, 2009

Capital One Misses, Stock Should Hit $1000 Tomorrow

Reported loss of -$0.39 EPS on -$0.08 consensus. Managed revenues fell 18.6% year-over-year to $3.73 billion, missing consensus estimates of $4.17 billion. The company reported a Tier 1 capital ratio of 11.4% and a tangible common equity ratio of 4.8%. Capital One added a $124.1
million allowance for loan losses.

The credit card company has chosen not to specifically update its outlook for managed charge-offs given "significant uncertainty in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 economy." What is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 problem with that - cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 investing public surely would completely condone (and welcome) any and all optimistic lies at this point.

Of course if one removes cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 loss provisions, all is good. That would assume nobody will ever be delinquent on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir credit card payments again...But it would be in line with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 accounting rubbish that all big banks have been feeding cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir flux capacitors to pretend cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y can go back in time to 1985 when cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 silent majority actually believed a word of what cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y said.
The company added $124.1 million to allowance for loan losses in anticipation of higher expected charge-offs in 2009. Allowance as a percent of reported loans increased 36 basis points in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 first quarter of 2009 to 4.8 percent. The coverage ratio does not include cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 $9.5 billion of Chevy Chase Bank loans that were added to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 balance sheet in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 first quarter.
Too bad cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y need to provision for roughly double that to catch up with reality. Sphere: Related Content
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