Shares of American Express (NYSE: AXP) bottomed in early March at just over $10 per share.
Instead of covering, I hedged my bet by keeping the American Express short open. I suppose that is the entire point of absolute return investing, but boy, was I wrong in doing that.
AXP shot up like a rocket over the last three months and now trades above $23 per share. It has been a big gainer this year, returning 25% through the end of the second quarter.
But despite the pain, I'll stick to my guns. I do not like the fundamentals of the credit card market and I would still avoid AXP. In fact, the stock may be an agressive short for some that believe credit will be the next shoe to drop during this economic crisis.
For the complete list of stocks to avoid, click here.
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Reader Comments (Page 1 of 1)
7-20-2009 @ 1:16PM
j0nd4m4n said...
Do you have any basis on making this stock one to avoid besides "I do not like the fundamentals of credit card market".
Out of the several big credit card company this years, AXP outperform Visa, Master, and Capital One.
Sorry about your loss... but...