Time to buy Amex stock?

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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Cucumber
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Time to buy Amex stock?

Postby Cucumber » Sun Jan 18, 2009 1:04 am

I'm pretty broke myself I don't have money to right now :( but if you have some money to play with in the market American Express is super cheap right now.

The last time Amex [AXP] was at this price was like 17 years ago. Sure economy sux especially banking but they have taken more of a beating than they deserve. Get these figures:

over 4% dividend
still making a profit!
5.8 times earnings and 9.1x next years earnings
all the stock combined is only worth 19 billion!

no matter how you cut that Amex is a good buy right now. :D
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Mogul of Pineapples
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Postby Mogul of Pineapples » Sun Jan 18, 2009 3:57 pm

Do I think it's cheap? Yes. But there are hundreds of other companies just like it that are grossly undervalued too. This is why it's cheap. Then add in the fact that Amex is now a bank and part of that whole mess and there's another blemish on its record.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

sputNick
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Postby sputNick » Mon Jan 19, 2009 2:32 pm

Maybe. Maybe not.

The bailout money from the feds gave the govt ownership in the co. How much did that dilute shareholder value? How much bad debt does the co. have?

You got to take all that into consideration first. You can't base it on historical prices because what we are seeing now never happened in history!

bozell
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Postby bozell » Sat Jan 24, 2009 3:51 am

cap one posted a big loss yesterday. amex could follow.

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fffresh
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Postby fffresh » Sat Jan 24, 2009 10:57 pm

Wait and buy when it gets a little cheaper. We are not at a bottom yet. If I have the financial means to I know I plan on buying a good amount of their stock later this year when it gets cheaper. American Express is one of the greatest brands in the world. Although they will inevitably face rough times ahead they are a company worth owning. My current investment strategy is to buy strong brand names and companies like this to ride out this storm. Now is not the time to be throwing your money into speculative companies. You need to be investing in strong large cap companies with a strong brand and track record. Amex is a Dow component. Well that certainly isn't a guarantee of anything it is a benefit to have.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jan 26, 2009 8:23 pm

Earnings for AXP 4th quarter came out today. Earnings were down 79% and that is the 5th quarter in a row of declines in profit for the company. During this time they earned $172 million so they are still making a profit. Bad news normally but it was actually better than expected.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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Postby Multi-Purpose » Wed Jan 28, 2009 7:30 pm

No one has taken into account that the govt infusion of cash dilutes the stock. You can't compare it to historical values because of this.
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Cucumber
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Postby Cucumber » Thu Jan 29, 2009 2:01 am

Amex stock went up 7% today.....

:eek:
OBAMA
Stop talking crap about him!

CFAlevel3
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Postby CFAlevel3 » Sat Jan 31, 2009 5:23 pm

AXP is far from being out of the woods. We're looking at the remainder of the year to be equal or worse than the current economy. Why buy now?

AnthonyBarone
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Postby AnthonyBarone » Sun Feb 01, 2009 2:45 pm

All I know folks is I bought Discover credit cards stock DFS at 14 when no one thought it could get cheaper back in October or November. It was trading at 4 to 5 times earnings back then. Today the price is cut in half down to 7 bucks.

Go ahead and buy whatever floats your boat but I wouldn't bet the ranch on it that's for sure.



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