It's about time, the market tears off the facade of Capital One.
COF received $3.555 billion of taxpayer money.
Today, Capital One's market cap is now $3.52 billion! Maybe Capital One will now tell us they didn't want the TARP money!
Capital One a few weeks back, made a big deal about allowing people to customize their own credit cards.
Why would anyone want to put their picture on a credit card that they are going to default on?
Remember the person that created the fake hundred dollar bills and ran them through the slots in Vegas? The machine took the phony money, and then the players cashed the tickets, and they would have gotten away with it. But the crooks used their player cards so they could get a free buffet so the casino was able to track the couple down!
But maybe you don't like the idea that people aren't going to pay their credit cards. So enter Jones Soda (JSDA .57). Now I like the stock at this price but remember when this was 30 in May of 2007?
Jones Soda's marketing blitz at that time was the idea that you could customize your soda bottle, with a picture of your choosing on the label. And that they used real sugar!
The fad went out with organics, and so did the customized labels but after Whole Foods beat numbers and rallied (even though it's financial outlook was downgraded by Moody's after the close) the stock is now worth a look.
Heck, you could do a pairs trade. Short Capital One on their new customized credit cards, and go long Jones Soda at .57 cents, who already has suffered with their customized labels!
And unwind the trade when they meet!