Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, November 16, 2018

Article Excerpt

AMERICAN EXPRESS COMPANY, $109.46, symbol AXP on New York, is one of the world’s largest issuers of payment cards. As of September 30, 2018, it had 115.1 million cards in use across 130 countries. The company issues both traditional credit cards, which let users carry a balance, and charge cards, which have no pre-set spending limit but must have their balances paid in full each month. Activist investor Dan Loeb disclosed on November 9, 2018, that his hedge fund Third Point Capital had taken a stake in the financial services giant. While Loeb has yet to disclose the size of the investment, Third Point did discuss American Express in its third quarter investor letter. Rather than agitating for change, Loeb believes that American Express represents a good investment. He says the company is on the right track now after falling behind in recent years from setbacks including the loss of co-branding relationships with JetBlue Airways Corp. and Costco. Loeb thinks the company…

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