Posts by Jeremy Ryan:
I added to my position in Capital One Financial Corp (COF) position today at $72.08. Capital One is now our 7th largest position at this time.
Much of what I said in my previous Capital One analysis still stands. The current price/book is .59 and dividend yield of 2.17%.
I still believe that while they will have some losses due to non-payment from customers due to COVID-19, I think the selling well over-done as more people buying online should help make up for some of the losses as they get a percentage of all the merchant fees charged. Meaning when you buy something using a Capital One credit card they still make money even if you pay off your balance every month.
The fact that Capital One is priced at 59% of book value seems very low since they have a great record of managing risk as they did fine during the financial crisis of 2007–2008.