American Express (AXP) Message Board

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Non-Tech : American Express (AXP)

AXP 365.82

+1.5%

3:59 PM EST

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To: Carey Thompson who wrote (23)	8/10/1997 6:20:00 PM
From: Andrew	of 179

Anyone: I bought this stock in Dec. 96, and intend to hold it for as long as the company keeps performing well. Although it's risen 60% since then, I find that the stock is still very significantly undervalued. Yet observers whose comments I've read often claim that it's "too high". People don't seem to want to give the company credit for turning things around. It's still viewed with suspicion, lumped in with the other credit card peddlers who can't seem to collect on what they're owed. Just wondering what people think about this company's chances of ever becoming fully valued even if it keeps up the strong performance over a period of several years. I realize there are challenges ahead, but Harvey Golub seems to be a very capable and honest manager. Will this never matter, because there is some unwritten rule that financial services companies are never allowed to exceed a certain P/E ratio or something? I feel quite strongly that (on a free cash flow growth basis) this stock would be closer to 200 than 100 today if AXP was selling soft drinks or something. People seem more concerned with "relative value" than "absolute value". Does anyone think this is likely to change? Or will this undervalued stock plummet as completely as everything else when the big crash that everyone is predicting comes around? Just interested in people's opinions...I'm certainly not going to sell anytime soon. Andrew

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