I agree with that thesis, says Joe Terranova. I too like Amex.
In terms of valuations, the stock is compelling, says Guy Adami. It’s a great franchise. But the stock hasn’t gone anywhere for the past 6 months.
Also AXP is facing issues with the government and for that reason alone, I’d stay clear, says Steve Cortes.
American Express has lost their link to Continental, adds Stephen Weiss author of The Billion Dollar Mistake, and I think that’s a negative for consumers. Also the DOJ issues are looming. Both issues could keep a lid on the stock.
> Click here for more coverage of American Express earnings
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Trader disclosure: On Oct. 21, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Cortes owns (K); Cortes owns (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (RSX); Cortes is short the U.K. Pound; Cortes owns U.S. Treasuries; Cortes owns the S&P 500; Terranova owns (APA), (AAPL), (AXP), (C), (CRM), (GOOG), (GS), (FCX), (MMM), (ORCL), (PCP), (PEP), (PFE), (TBT), (UPL), (VRTS), (XBI); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Weiss owns (AAPL); Weiss owns (QCOM); Weiss owns (PWER); Weiss owns (VZ); Weiss owns (CSX)
For Joe Terranova
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