Market Read®

  • Saturday, September 05 2015

This prediction has hit its target!

As predicted, the stock moved up from $39.08 to $40.74 (4.24%)
between March 01, 2013 and March 06, 2013.

This prediction has passed its maturity date!

This prediction was valid between March 01, 2013 and March 20, 2013. All information in this report is for reference only and should not be considered forward looking.

(NYSE: DFS)

Discover
Financial
Services


Bullish

Discover Financial Services operates as a direct banking and payment services company in the United States. It operates in two segments, Direct Banking and Payment Services. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, home equity loans, prepaid cards, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit. The Payment Services segment operates the Discover Network, which processes transactions for Discover-branded credit cards, and provides payment transaction processing and settlement services; and PULSE network, an electronic funds transfer network that provides financial institutions issuing debit cards on the PULSE network with access to automated teller machines and point-of-sale terminals. This segment also operates the Diners Club International, a payments network that issues Diners Club branded charge cards and provides card acceptance services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.

Investment Highlights

  • EARNINGS predicts that DFS will move up 5.73% by March 20, 2013. The target is $40.74. more
  • PATTERN SCAN predicts the price of DFS expected to move up in the coming weeks based on the appearance of a 'Trend Line Break(3)' pattern. Specifically, a ACT EOD variant of Trend Line Break(3) has been detected. The target is $39.75. more
  • SQUEEZETRIGGER predicts that when DFS closes above $27.75, we expect a short squeeze to begin that could quickly drive the price of DFS considerably higher.
  • VALUATION DFS has a current calculated value of $53.90 which means the stock is undervalued compared to its price of $51.31.

Predictive Range February 26, 2013 - March 20, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$38.23 - $40.24

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Earnings

 

Predicts probability, price move and length of move before and after earnings reports.

The movement of stock prices in the days and weeks leading to and following these earnings announcements may follow a predictable pattern. Most companies stock price histories show random or unpredictable movements around earnings dates. But some seem to repeat the same pattern quarter after quarter, year after year. The # of Reports in the table below shows how many previous quarterly reports comprise the indicator that predicts how a stock will act after its earnings are released.
Earnings, or profits, drive stock prices. The market values a company based on its current and anticipated future ability to make money. The market takes the earnings pulse of a company four times per year when quarterly reports are issued. When this information is released it can often be a trend-changing or a trend confirming event because the information is so vital to the market's perception of the vitality of that company.
This technology is designed to help the stock trader identify those companies that seem to have a consistent pattern of movement before or after the earnings release date, based on the history

  • DFS, currently trading around 51.31 expected to hit $40.74.
  • The price of DFS tends to move up before earnings report dates.
  • Of the previous 13 earnings releases, DFS has moved up 85% of the time.

Pattern Scan

 

Tracks "Trigger Events" that positively or negatively affect the value of a stock.

Discover Financial Services (NYSE: DFS) is predicted to go up in coming weeks based on bullish technical trends that have appeared in the recent performance of the stock. DFS has demonstrated Trend Line Break(3) strategy ACT EOD with a strength of 3.0/5. The higher the strength, the higher the probability of an accurate prediction.

  • The price of DFS expected to move up in the coming weeks.
  • PatternScan has detected that a 'ACT EOD' pattern has appeared.
  • Specifically, a ACT EOD variant of Trend Line Break(3) has been detected.
  • This indicates a high probablity that DFS will move up in the coming weeks.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for DFS is 27.75.

This means that when DFS closes above $27.75, we expect a short squeeze to begin that could quickly drive the price of DFS considerably higher.

Date Short Volume Short Value SqueezeTrigger
2015-07-31 2759415 160223500.384 58.0643
2015-06-30 8120380 475714597.464 58.5828
2015-05-31 2667404 156317076.391 58.6027
2015-04-30 5633642 327831768.536 58.1918
2015-03-31 4868247 288818489.769 59.327
2015-02-28 2525386 140867798.85 55.7807
2015-01-31 5044790 314866027.539 62.4141
2014-12-31 7299794 465883072.792 63.8214
2014-11-30 1523430 98211114.153 64.4671
2014-10-31 1394038 89246452.1638 64.0201
2014-09-30 1561643 98933831.9932 63.3524
2014-08-31 1125637 67899549.477 60.321
2014-07-31 10999053 693607981.517 63.0607
2014-06-30 1168078 69465598.66 59.47
2014-05-31 7591946 433172903.727 57.0569
2014-04-30 11795570 670845913.939 56.8727
2014-03-31 11115752 644427941.174 57.9743
2014-02-28 3689349 196368920.939 53.2259
2014-01-31 3439114 188915002.868 54.9313
2013-12-31 4986114 262747764.733 52.6959

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused DFS's price to rise
  • If Friction Factor is negative, more selling than buying caused DFS's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2015-07-24 -1.09 1422789 1719727 -296938 -2724.201835
2015-07-23 -2.3 2849999 2290412 559587 Bearish Bias
2015-07-22 0.07 871380 756281 115099 16442.71429
2015-07-21 -0.22 630149 515722 114427 Bearish Bias
2015-07-20 0.41 559855 487334 72521 1768.804878
2015-07-17 -0.16 860071 735452 124619 Bearish Bias
2015-07-16 0.51 779475 949340 -169865 Bullish Bias
2015-07-15 0.03 535338 593362 -58024 Bullish Bias
2015-07-14 0.32 781133 567428 213705 6678.28125
2015-07-13 1.07 499892 627362 -127470 Bullish Bias
2015-07-10 0.63 600279 622346 -22067 Bullish Bias
2015-07-09 0.16 871173 879488 -8315 Bullish Bias
2015-07-08 -1.75 659656 876406 -216750 -1238.571429
2015-07-07 -0.1 1288344 900904 387440 Bearish Bias
2015-07-06 -0.47 850581 747429 103152 Bearish Bias
2015-07-02 0.03 663632 478067 185565 61855
2015-07-01 0.8 1045310 722423 322887 4036.0875
2015-06-30 0.29 1074031 716678 357353 12322.51724
2015-06-29 -1.32 1015444 1233683 -218239 -1653.325758
2015-06-26 0.08 872870 1783124 -910254 Bullish Bias

Valuation

 

Value is a measure of a stock's current worth. DFS has a current value of 53.9 per share. Therefore, it is undervalued compared to its Price of $51.31 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease.

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 16.412 81.7 13028 586 95.70%
SqueezeTrigger 12.486 21.68 9772 679 93.50%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.296 15.23 52898 4969 91.41%
Group Correlation 6.639 14.4 7088 846 89.34%
PatternScan 8.44 11.41 196839 29482 86.97%
Events 6.84 11.27 4267 658 86.64%
Earnings 8.512 10.33 24464 4903 83.30%
GATS 5.405 7.89 69078 14229 82.92%
Naked Shorts 13.822 10.99 2763 708 79.60%
Friction Factor 6.985 3.64 7411 2112 77.82%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$51.31
52 Week Range$46.93 - $64.44
1 Month Range$61.10 - $64.44
Avg Daily Volume2242600.0
PE Ratio12.69
 
Earnings Per Share
YearEPS
2015(E)$4.936
 
Capitalization
Shares Outstanding466MM
Market Capitalization$29170.00MM
 
 

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