Author Topic: ADS - Alliance Data Systems  (Read 47199 times)

frommi

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Re: ADS - Alliance Data Systems
« Reply #280 on: April 15, 2019, 11:48:22 AM »
Ignoring book value for a second (since this will get messy with the transactions and buybacks) and ignoring that most people here have little faith left in management -- they seem confident they can earn 30% ROE on their core and growth portfolio. So why do you doubt they will get a higher ROE than SYF?

Base rates. Maybe with peak earnings they get an RoE of 30%, but over a full cycle i expect them to be in the range of 20-25%. That is the upper range of all credit card companies. But even with these assumptions i think that it is cheap enough to warrant a buy at these prices. (But i still hate the chart, so i won`t do it right now and wait for more clarity.)
« Last Edit: April 15, 2019, 12:04:07 PM by frommi »