sp, page-8

NewB, is that from direct experience with COF, working for COF?

At $1, if the eps is 18 and div is 12.5 then that's an eps of 18%pa and a gross div yield 18%pa, so even a 20% fall in eps and/or dps would not be serious, since the $1 price will still produce a healthy eps and dps.

I note that at least 2 brokers are recommending COF as a strong buy at these prices, but it is difficult to understand why the sp has not moved to reflect the relatively high projected eps and dps - maybe it is the market's perception of possible problems from COF's gearing levels. COF came through th epast 3 years with reasonable returns.