Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

AMEX

The Death Spiral

The Decline of American Express

My take is that American Express is not a good long term investment because its business is not sustainable. There is simply no way that it will be able to keep paying out 32¢ dividends.

American Express is overpriced and headed for a serious fall. Stay away from Amex shares unless you are looking for something to short.

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Long Ideas

Should we be Worried about American Express

American Express also some very bright prospects for the future. One is the growing use of payment apps such as Apple Pay and Android Pay; which Amex supports. That might grow the value of credit card payments and profits from them.

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Opportunities

The Incredibly Shrinking American Express

Although its business is shrinking, the third quarter earnings report indicates that American Express is still a cash rich company

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Crazy Stocks

American Express: Strong Company, Weak Brand

That means American Express is still a good investment even though it has a weak brand. The moral of the story is that a strong company can offset a weak brand, but a weak company can undermine even a great brand. For an example of a strong brand being dragged down by a weak company, see McDonald’s.

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Good Stocks

American Credit Card Companies Are flush with Cash

Despite the risks, the U.S. credit industry is capable of generating a lot of cash, which can lead to high levels of float. Float is Warren Buffett’s term for a constant stream of revenue or stockpile of cash that a company can tap or borrow against at any time. Classic examples of float include credit card fees and insurance policy premiums.

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Good Stocks

Ten Really Great Underpriced Stocks to Consider Buying Right Now

If you want to take a gamble on a tech company that could be the next Google, PayPal could be it. PayPal’s revenue was growing at a rate of 14% in the first quarter of 2015. PayPal’s international revenue grew at a rate of 52% in 2014, the volume of mobile payments it processed grew by 58% and its total payment volume grew by 26%.

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