re: Ann: Investor Presentation Initial Portfo... It's a nice one...

re: Ann: Investor Presentation Initial Portfo... It's a nice one day recovery, and the fact that they are making headway with some meaningful changes has put COF back on my radar. However, as far as I can see, the optimism might be a bit overdone.

$10-$12m restructuring costs is a big chunk of change for a company of this size. That's spent money. And I'll give anyone even odds that it's closer to $12m than $10m, even after an initial estimate of $7.8m.

Also, $18m in annual savings achieved does not come without some serious consequences. Was previous management so inept that these costs were unecessary in the generation of their earnings?

It looks like they might be on the road to recovery, but tangible asset position is weak, intangibles are large and exposed to likelihood of further impairment, and cultural change is much harder to achieve than it is to talk about - especially when you're trying to achieve it at the same time as major cost cutting.

I wouldn't be surprised if COF heads back down toward pre today lows as restructuring and impairment pain land a few body blows on an already tired fighter. If they do retrace to low $0.50s I'll be buying some.