Best of all, American Express is setting on a huge pile of cash. It reported $31.092 billion in cash and equivalents on 31 March 2018. That gives Amex the resources for a huge stock buyback or acquisition if it wants.Read more
There is a reason why simple reason why American Express is still growing again. Basic credit card services are still a great product for which there is tremendous demand.Read more
If American Express can integrate its cards with popular cryptocurrencies; such as bitcoin and ethereum, it would expand its reach particularly in the developing world. An intriguing option would be a card that pays reward points in bitcoin or ethereum. A long term revenue generator would be a card that allows for transactions in several different crypocurrencies; such as Litecoin, Bitcoin and ethereum. A company called TenX is already developing such a card in Singapore.Read more
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.Read more