Two Ways: Amex Up As Cardholders Pay Down
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According to Bloomberg, the largest US credit card company by purchases said writeoffs on US loans deemed uncollectible rose to 8.8% in March after increasing to 8.6% in February and 8.1% in January. American Express was also able to sell previously written off cardmember loans to third parties. This helped offset some losses and improved the March charge-off rate.
The company did say it expects increased "past-due loans and writeoffs to increase through the second quarter of 2009." But despite the warning, shares closed up 11.88% to $20.62.
See Professor Mike Mish Shedlock's Goodbye to the Rally?
From the Bull Pen: Was Amex's gain today really a rush to value? The stock could have more room to run, but a better play might be in the agriculture sector, like Agrium (AGU). Watch the stock as it creeps out of a multi-month range. Those bullish can set a 2% sell stop.
From the Bear Cave: If the market's rally is coming to an end, bears can use the S&P 500 Depository Receipts (SPY) with a tight buy stop above $86.
Have a good night!
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