Monday, April 23, 2007

Disappointment From Capital One

I am really disappointed with Capital One (COF). They announced a bad quarter, with an even worse outlook for the year. Although they appeared not to have a ton of exposure to sub-prime mortgages, they clearly have a bad loan portfolio, and are being bit because of it. With the acquisitions of North Fork and Hibernia, I thought that they were going to show some positive synergies that would help the balance sheet. This stock is going nowhere for a while. I still think that long term Capital One will offer a nice variety of services, and will be extremely profitable. If the stock drops too far, I might be interested in picking up some shares. Until then, I'd stay away from this stock.

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