It is the only Financial stock I own.
As Brian clearly shows, you don’t need to rush out and buy it. In fact, I would be fine with the stock in the mid 40’s and even low 40’s to initiate positions. The big financial brands are much better buys when there is blood on the streets.
I have been a customer since college and rarely do I have a beef. I don’t buy into the whole ‘feel part of a community’ thing but the service when I need them more than makes up for the cost.
I go basic corporate card. Always have.
American Express can just keep on keeping on and be a continued great stock for the long haul…OR they could lend to the poor like Capital One Financial and other subprime lenders (bad idea according to Michael Lewis ). They have done well to manage their members so far.
To really shake things up in the financial, tech/internet world, they could buy Facebook.
Amex could truly step into the college card and lifetime market for $5 billion. The company has a market cap of $70 plus billion with $7 billion in cash. They could get away with paying stock for the deal and the market would still approve the deal. So for $5 billion, they end up owning the under 25 crowd and cut out tons of the crap advertising that kids and adults will get spammed with from banks, brokers and mortgage companies and replace it with Amex giveaways and affiliation programs that everyone would be a part of happily.
I have talked about Coke buying Apple and now American Express. Ebay (PayPal) would also make tremendouse sense.
Disclosure – Long American Express