Why I like this value pick:
-core business: auto lending, which is a predictable business
-reasonable valuation
-tested business model (great relationship with auto dealers: GM, STLA
-transformation phase (Ally online bank, Investment platform, mortgage originations) - decreasing dependency on auto loans
-acquisition of FairSquareFinancial, a digital-first credit card company will boost bottom line: CC businesses are cash-machines
-Satisfied employees (Glassdoor 3.9 out of 5)
-Poised to benefit from rate hikes
Why I’m not buying yet:
-still heavily dependent on auto loans (concentration risk)
-slowing car sales (much of that is already priced in…I don’t know how much though)
-heavy competition in other offerings such as online banking