Discover Financial Services (NYSE:DFS) has been noticeably active lately. Consider this Bear Case Scenario as you ponder the value. The company’s primary business is consumer lending, an extremely competitive and volatile business. It’s relatively small size places it at a large disadvantage when competing for all important brand awareness and payment volume with larger more established players. They will never be more than a secondary player in payments.
George Gutowski writes from a caveat emptor perspective.