That downgrade from UBS today was not appreciated since I own both American Express and Discover Financial.
It actually seems a little funny to me, I mean, to get bearish now. If somebody was going to look ahead and say that heavy debt burdens and a falling housing market were going to crimp consumers, it seems like the time to do that was back in, say, July of last year. Right now we're inundated with recession talk and consumer-exposed companies have already been slammed -- Discover and Amex are down 49% and 28%, respectively, from their 52-week highs.
Now I won't claim clairvoyance and say that these stocks won't still go down more, but I think when you look at the long term fundamentals of these businesses, along with the strong brands, you're getting a pretty good deal today.
Capital One -- which was also downgraded -- well, that's another story, UBS can have that one.
(redundant disclosure: I own AXP and DFS)
-AvgJoe
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2 comments:
I actually liked it that UBS downgraded AXP. I own AXP too. I would like to see the stock fall 50% (or 99%!) so I can back up the truck and load up!
It doesn't matter whether other people agree or disagree with you, as long as the facts are right, your logic is right, and the price is right!
Ha! Good point.
To me, this may be another example of Wall Street getting bearish once the fears have already been priced in.
But if you ask me, yeah, I wouldn't mind the stock falling further either, I still have more cash to put to work and wouldn't mind picking up some more AXP.
Joe
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