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Strategies & Market Trends : Value Investing

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To: Wallace Rivers who wrote (56735)	1/24/2016 12:13:46 PM
From: Spekulatius	Read Replies (1) of 77157

Re Costco, VISA - the affiliate business was part of their model to increase the reach of the Amex card. This business does not seem to be competitive any more, so this is definitely a big negative for Amex . This loss may be priced in the stock already. The problem may go further though, as it indicates lack of brand cache and competitiveness. Amex could charge higher prices for their services than Visa and MC and it appears to me that there is pushback from the marketplace, which will force Amex to reset their pricing and that can't be good for Amex margins and stock price.

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