costco staples mcdonalds walmart etc et
It actually jives with the fed report that credit card use declined in the last month declined...
it will be an intersting few quarters to see how axp v etc are able to justify their valuations...
Staples especialy is troubling as it indicates small buysiness users who are big axp card owners (blue)
American Express is a bank. Banks borrow nearly every dollar they have, whether from depositors or from other banks. AXP's assets exceed its liabilities (by $19B or about $19/share, pretty much all in cash), it has decent EPS, and pays a fair dividend.
Check out some other banks. See if their liabilities don't bug your eyes out. (BAC, for example, total debt = 531B; Citi 483B; you get the picture).
You have to learn to read every company's balance sheet in the context of its competition and operational model. Just comparing every stock to every other with the balance sheet as a template is comparing applesauce to brake fluid.
Simple math: Price $90, EPS TTM = $5.00
90/5=18. Very basic.
Visa and MasterCard are both up over 400% each in the same 5 years, and they have a much higher PE ratio. AXP just has a better business model. AXP was $65 before the great recession in May of 2007.
That's more than Amazon, Google, and Apple. Sales growth is only projected at 6% and you know that's a stretch in this economy.
George Sorose just increased his short position on the S&P 500 in a big way. Profit taking will hit the high flyers the most. Just my opinion.