Nothing black and white but given these comment I will say something is cooking..
NEW YORK, April 27 (Reuters) - American Express Co chairman
and chief executive Harvey Golub told shareholders at the
annual meeting Monday that no stock split is planned, no
increase in the dividend is expected, and repeatedly said "No
comment" when asked about merger prospects.
Fending off questions about merger policy and a report that
there have been talks with American International Group Inc
, Golub said discussions of the board are "kept
confidential" unless something occurs that requires a
disclosure. He said it is the policy of the company not to
respond to rumors and speculation.
Golub did say that the company has pursued strategic
alliances and partnerships around the world.
On the question of an increase in the common stock
dividend, Golub told a shareholder that U.S. tax laws make it
"more effective to get an increase in value from an increase in
the price of the stock." He said the company has been doing
share repurchases as one way of getting the stock price higher.
He also said "the economics don't work for a stock split."
He said the only beneficiaries of a stock split are stock
<<My record last three months better than Buffet's...listen to the successful. Buffet's performance while still good is weakening as the street catches on to his MO, which is to silently acquire than sell into rumors, strength.>>
What moronic observations.
In securities, give a time frame, you're either long, short, or neutral. The fact that you live in Arkansas tells me your decision making is probably poor, and your likely a product of in-breeding.
to the successful. Buffet's performance while still good is weakening as the street catches on to his MO, which is to
silently acquire than sell into rumors, strength. About Sandy Weill, who I've spoken to personally years ago, if he gets within range
of Golub, Golub is history. Weill has no respect for AMEX structure and will slice and dice. I'm glad you AMEXer's made some
money over last few years however, as it was long overdue. My simple point is that trouble lurks from the Fed Reserve, Asian
problems, reduced travel likely as oil rises with interest rates, AMEX Financial Advisors class action suit filed 12/96 and advisor
turnover problem, and that financial stocks are extended. Again, I'm not short or long, just right.
My normal comfort zone is the tech stocks, but like Mr. Buffet the investment hero, I too bought AXP shares today at $101.125. I also bought Travellers at $60.125.
It seems AXP downside is 10% if the merger fails, and the upside is 30-40%. Good luck to all, and God bless.
When AXP sent out its annual report, AXP sent out a 45-page packet along with it entitled, "Notice of Annual Meeting of Shareholders to be held April 27, 1998." On page 2 of this packet is the information on Buffett's plans to buy up to 17% of AXP, from his current 10.6%:
First, the packet on page 2 states that Warren Buffett owned 49,456,900 shares, or 10.6%, of AXP as of 12/31/97.
Then, the packet on page 2 goes on to say the following:
"In connection with obtaining the approval of the Board of Governors of the Federal Reserve System to acquire up to 17% of the outstanding voting shares of the Company, Berkshire and the Company have entered into an agreement (effective for such time as Berkshire owns 10% or more of the Company's outstanding voting securities), and Berkshire has made commitments to the Board of Governors, designed to ensure that Berkshire's investment in the Company will at all times be passive."
Berkshire Hathaway's website states that Buffett owned 49,456,900 AXP shares as of 12/31/97 and the same number of shares as of 12/31/96. This means Buffett did not buy or sell any AXP shares during 1997. But we know from the above "Notice of Annual Meeting," that Buffett plans to buy up to 17% of AXP, so these purchases must be occurring in 1998.
This is a reliable information, I read it in some of those news items, can't remember the source now. Also buffet is buying more AIG interesting.
Your number of 100 or 99.5 is also in trend line. And I think that is the downside for AXP. IF merger rumors are GONE.
AXP is a fundamentally strong company,
and the results prove that. No pop was after the results so I think 100-101 is the bottom.
I got in at 105 7/8 and if merger happens we will soon 130-140.
If that does not happen I am not worried it will be back to 106 in a month anyway. So at this time IMO,
SHORT TERM ( 1 month) AXP is speculative strong buy.
MEDIUM to LONG TERM it is a buy.
Well you should sell NOW only if you are selling all other stocks. And expecting a BIG drop in the market. I am still bullish medium to long term
thank you for the info on axp, did not know W. Buffet was buying also. still not sure if a rise in short term rates could be the reason for the softness in the stock. I have studied the 6 month chart and it looks as though there should be support at around 100. Could you please post where you received the info. on Buffet purchasing AXP????
If a merger isn't imminent, then Harvey would have explicitly ruled out a merger, just as he explicitly ruled out a stock
split and a dividend increase. The fact that Harvey did not explicitly rule out a merger could mean that a merger is in the works.
On the other hand, Harvey may not have explicitly ruled out a merger because such an explicit ruling out could have caused
AXP's stock price to plummet today. And if there is no merger in the works, then Harvey would be wise to just say, "No Comment,"
rather than to specifically rule out a merger.