Investment Q&A

Q: Capital One just announced that it will acquire the fintech company Brex for $5.15 billion. My understanding is that this price is significantly lower than Brex’s valuation about a year ago.
1. Does this acquisition make COF shares more or less attractive as a buy right now?
2. How would you rate COF following this announcement and after it missed expectations in its January 23 earnings report?
3. What do you see as the key risks to the stock beyond political noise?
4. If you would rate COF a buy after all the recent updates, your rationale please?
5. How do you view COF’s business model and competitive moat relative to peers, such as American Express (AXP)?
6. What do you have for *current* (post earnings. release today) for forward P/E and PEG? Debt levesl if acquisition goes through ?

Your thoughts on COF in light of the latest news would be much appreciated, thank you. :ao: .

Q: Visa’s business model has come under attack this year by alternate digital payment systems, including coins. And this morning KLARNA which goes public, and its Swedish CEO confidently asserted it will take business away from credit card companies. Swedes are not given to bragging so I take KLAR seriously. I am tempted to sell Visa and invest the proceeds in COF or AXP, whom I see as credit card companies that do more than collect tolls.

Am I wrong in thinking this? Is Visa management’s past record such that they are nimble enough , tech-savvy enough to deal with recent challenges?

Q: Good afternoon 5i,

I looked back and the last question on this company was late May. As we come to the close of July, the "noise" on this company seems to be picking up, with a fair number of "experts" in the various media suggesting it is one to hold onto as the purchase of Discover evolves and Capital One starts taking advantage of the synergies. The noise being generated is enough to get me curious.

I would appreciate your opinion on this company as a buy at current prices, with the idea of holding in an RRSP and switching out of one of my Canadian Financials in an effort to diversify. If not a buy now, is there a price where it is, or is this company one to stay back from?

Thanks for your insights.

Dave

Q: Now that the merger is complete can you please comment on short and long term potential for the combined company.
Thanks, Murray

Q: hello 5i:
do you see any problems with the proposed merger?
thanks
Paul L

Q: Your thoughts please about the merger with Discover and their competitiveness versus the dominance of Mastercard and Visa

Q: hi. can you rate these as a buy, sell or hold please. long term investor
cheers, Chris

Q: Can you suggest some US and Canadian high-quality value stocks with attractive valuations and, finally, that meet the "mundane" test. Heard a commentator discuss this recently. I think the idea is that if a high quality business is flashy, etc, its valuation would reflect that (say Coke or Berkshire Hathaway?). Other "mundane" companies would not (yet) have that prominence premium.

I'm not sure if this is the same as "deep value". Your comments and suggestions would be appreciated.

Q: Hello Peter,

I am leaning towards going all in with my borrowed chips for swing trades. This would be separate from my long term holdings. I would appreciate your opinion please.

Towards that objective, I have short listed the following:
AMAT, TER, ATVI, GNRC, COF, MS, BAC, LSPD, AFRM.

I think diversification does not matter for swing trades and, understanding that this is a crap shoot could you please suggest approx. 5-6 stocks, either from this list or others that you would suggest.
Regards
Rajiv

Q: Hello,
I am currently holding capital one at $86 per share and enjoying the recent surge as of late. That said, I am thinking about selling the position, keeping the principal, and using the proceeds to buy March 19 puts at $100 for downside protection in case of a market pullback.

What do you think about this strategy? Thanks in advance,

Q: These are all down about 40% from their recent highs. Do you have any concerns with the sector in general? Which two would you pick for bounce back potential?

Q: Hello,

What is your opinion on Capital One Financial? I noticed they have large insider ownership (for US financial institutions). The CEO has been there for 16 years. They were profitable during the financial crisis and apparently have strict underwriting. They have been beaten down worse than many. How do you think they will fair during this time? Would you buy here and if so, what is your target price in 12 months time?

Thank you!

Q: I'm looking at purchasing shares of Capital One after it's latest selloff. I plan on waiting to see where it settles before purchasing. Can I please have your thoughts on this idea. Thanks.

Q: I am looking for a US financial and COF came out on a screen. Could I please get your opinion. Not a buy and hold person so looking for med term growth with an exit strategy..recommendations appreciated!
thx,
Bob