Adesai

Credit Card Breakdown: AmEx Disappoints, as Predicted

Mojo is an idiot, its clear he loss some $$$ in Amex and DFS.

Have you seen MA chart for the last 2-3 years. Its on a steep incline.... WHY???? MA and V is targeting developing countries. In china 1 in 30 owns a cc; in india its about 1 in 60. These are huge potential markets. Global trend from cash to credit is occuring at a exponential rate. With the summer olympics along with huge chinese/ indian/ middle eastern banks investment in V, look for about 10-15% increase in credit card transaction year on year, which is what CEO saunders has predicted. Suntrust has a price target of $100 which is what V willl likely be trading at within several months.

Amx and DFS will likely be bankrupt or be in the red within several years.

Why American Express Should Be Ignored

I enjoyed this article and you made a great point Fxtrader. However with Visa being traded at 72 currently this stock has taken a beating. Suntrust has projected price target of 100, and there is no reason to believe Visa cant hit that with the upcomming olympics, growth potential in asia, buying visa europes, and buy back of shares. Visa is expecting 20% growth year after year.

Remember that before the first quarter earnings Visa was at prices of 73-75, after the earnings release the stock jumped to 80+. With second quarter earnings comming up look for the same trend. Visa and MA are being traded at high PE ratio compared to other credit cards, which is justified b/c of the limited or no exposure to consumer debt. While AXP and Discover will likely fall victim, as have banks recently, to the badd economy. The price of V has taken a beating because of lower expectations from the financial crisis, however once earnings release watch this baby sky rocket.