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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Live2Sail who wrote (122746)5/14/2008 10:41:58 AM
From: Peter VRead Replies (2) of 306849
 
CITIGROUP REITERATES SELL ON COF

this went out yesterday afternoon, so of course I waited to sell my May 50 puts until today ... COF trading higher all day

SNPMarketScopeViewsNews
2008-05-13 15:17:18.000

COF CAPITAL ONE FINANCIAL CORP. Stacy Trombino

Analyst Bradley Ball tells salesforce while his main concern remains credit quality deterioration, which appears to be accelerating, also increasingly worried about prospect for NT revenue growth.

In particular, expects loan growth to be weaker and consumer spending to slow somewhat.

In addition, past drivers of growth, incl. auto finance, non-US cards, have stalled or are still shrinking.

Moreover, thinks overhang of potential political/regulatory actions on card issuer practices pose addl uncertainty.

Says while still in early-to-middle innings of this credit cycle, revs look likely to languish.

Thinks it too early to justify recent rally in shares.

Keeps $40tgt.
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