Market Mad House

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

AXP

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.

Read More
Long IdeasStocks

American Express: Apple Pay Coming to Canada and Australia This Year

The release stated that Amex card members are “expected to be the first to use Apple Pay in Canada and Australia beginning this year.”

Read More
Good StocksStocks

Is American Express Really a Dying Brand?

That means American Express could be a nice bargain stock at some point next year. It also means that Amex is still a really good long-term investment, even if it is no longer America’s favorite credit card.

Read More
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.

Read More
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%.

Read More
Good Stocks

US Credit Card Companies Allowed into China

The loss of Costco Canada is already hurting American Express, where revenue fell slightly between December 2014 and March 2015. AmEx reported a TTM revenue of $34.04 billion on March 31, down from $34.29 billion on December 31. The loss of Costco Canada hit American Express hard because the club store giant is huge in Canada, as anybody who visits the country knows.

Read More
Long Ideas

Apple Pay vs. Venmo vs. Square

Square has also tried to launch its own payments apps called Square Cash and SnapCash. Square Cash is a payments app similar to Venmo and Apple Pay; SnapCash is a variation of Square Cash reengineered to work over the popular social network Snapchat. In other words, it’s Square’s answer to Venmo. One difference is that it can work with merchants that use Square.

Read More