I believe that you are right about that. I would pick my Drivers license photo to put it on it! LOL!
KRB does a very smart job of securitizations! Great company and well managed. And Al Lerner was a great man!
MBNA is smart because they don't lend to sub-prime customers. In order to even be considered for an MBNA card I believe you have to have a credit score of at least 700. They only issue credit cards to people that have the ability to repay their debts.
Hello! I've owned KRB since it was 15.50. I still see no reason to sell.
Al Lerner was a great man, Alfred. With the wealth he had built during his life, he was able to enrich many after it. He was a major contributer to the Cleveland Clinic.. one of the worlds biggest providers in health care. I am sure that there are many others that also benefited from his generosity. He was one that wanted the world to be a better place..and knew that his legacy would live on...
Cheers! to a great man passed...
I don't know about any Al Lerner but I know one thing, since going public over 10 years, KRB has increased earnings every year. That results in a smooth upwardly moving stock price. Plus they pay a decent dividend, so holding is rewarded.
Very true. Dividends are SWEEEEEEEEEEEEET!
Finished over $23 this week. I bought at $17 and am still holding.
[quote:ccb15cf051="HappyHarry"]Finished over $23 this week. I bought at $17 and am still holding.[/quote:ccb15cf051] KRB looks like a champ right now.
Almost $24 today! Oh happy days!
Looks as if this one holding steady at about 24/ 25ish.. does anyone here have any dealings with MBNA as a credit card customer? Are they a "good" credit card company (if there is such an animal) to do business with?
I recently got a card from them. It has a lot of cool features, like you get points for every dollar you spend. You can download a program that lets you shop more securely. You just set a dollar limit on how much you are planning on spending, and it will produce a temporary number good for 1 charge. ( So the # goes dead after all is spent ) Just sort of a nice little feature in todays day and age..
That sounds like a nice feature. With all the problems involving identity theft and credit card fraud, I guess it isn't that surprising that MBNA would use some technology to try and protect themselves and their customers against fraud. I'm sure the cost of the program is minimal compared to the monies credit card companies pay in losses and fraud.
MBNA is strict with the underwriting. They don't deal in the sub-prime, so they don't have huge default rates. They pay a dividend. Always a sign of an earnings champ. There cost of marketing is lower than other companies because of the affinity marketing, which they pretty much invented. That lower cost marketing, higher quality customers, and affinity marketing for loyalty make them unique in the credit card business.
Thanks for that info. I think I'm going to keep my eye on this one.. see what happens
KRB is one of my favourite stoks. I like its stability in eps growth. Every quarter, it seems very easy to know the next quarter eps.
Didn't they just pay out a dividend, too? I was reading a news article that says they are boosting Over the limit and late fees to 39.00, if your cc balance is over $1,000.00. Thats a pretty hefty penalty that will bring in a LOT of extra revenue for MBNA!
I believe it was something like .10 a share.. This is a snippet off an article from Yahoo: Consumers are expected to pay $43.1 billion in late fees, over-the-limit fees, finance charges and other fees on their credit cards this year, up from $39.6 billion last year. That figure is set to rise again in 2004, according to R.K. Hammer Investment Bankers, which follows the credit-card industry. "You've got more fees, charged to more people, triggered more quickly than ever before," said Robert Hammer, chairman and chief executive officer of R.K. Hammer. Stands to reason they have no doubt this is a sure fire way to make a lot of extra $$$$. I will not be one of those people paying out. A credit card is best kept in your wallet, and used only in the case of emergency. (My philosophy, anyhow..)
That is a pretty steep penalty to pay for over the limit and late fees. Most of these credit card companies have to be raking in $$. I say it's better " to make interest than pay interest" Bottom line, if people spend more than what they make, they are forever in debt to places like MBNA. They pay forever and ever. And the fees are just bonus $$. for shareholders to distribute amongst themselves at dividend time.
[quote:2c71638bc1]I say it's better " to make interest than pay interest" [/quote:2c71638bc1] I'm with you on that one. Strap on all kinds of extra fees to make it even worse. If I can't afford something, I would rather not have it. If you pay just the minimum balance on a credit card, you'll still be paying on it 50 years from now. Card companies like Providian and Capital One love these types of folks. In fact if you aren't one of those types, they will cancel your credit card no questions asked, No offers.. just SEE YA!
KRB had another good quarter. Dealing with Super Prime is a very stable business.
[url=http://www.forbes.com/markets/2004/01/23/0123automarketscan02.html?partner=yahoo&referrer=]Huge Quarter for MBNA[/url] SuperPrime profits are still way up!
That is one heck of a quarter.. Never a bad idea to bank on people accruing more debt.
Look what their stock is worth if they [url=http://www.quicken.com/investments/seceval/?cmetric=intrinsic&cursym=&csym=KRB&csym1=&csym2=&initearnec=2%2C174%2C799%2C872&egrrbtn=dd&egrdd=3&egrec=&dcrrbtn=ec&dcrec=15.00&dcrdd=0&p=KRB]perform for the next 10 years like they have for the past[/url] Company has HUGE free cash flow, HUGE earnings and a consistent operating history. Plus it pays a nice steady dividend.
KRB is the only credit card company that computes interest twice in one month. Chew on that for awhile. Imagine how much that helps the bottom line. [url=http://www.quicken.com/investments/seceval/?p=KRB&tag=1]From 1.3 billion to over 10 billion in sales in ten years.[/url]
I bought in a few shares today at 27.11 Let's see how this one goes..
I'll bet it will be just dandy. How long are you planning on holding on to it?
You can hold this one for awhile. There P/E is still pretty low considering the fact their numbers are still growing. Plus they are a huge company so institutions will pile in.
According to the news yesterday, KRB is going to be offering Credit cards with the American Express logo within a year or so.. This is a snippet from Yahoo News: "MBNA customers tend to spend a lot, American Express customers tend to spent a lot. There's a real good fit there" That should do well for both companies, they are also going to offer American Express Cards to most of their 40 million existing cardholders..
Yeah! How great is that? 40 million accounts! Time for some cross-selling and the demographics of KRB and AMEX are similar: high income, low risk.
Having a great number of "better" customers is never a bad idea. Being able to market yet another Credit Card to affluent credit worthy customers is a way to make more business.. and more money!
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