Stock Market Game

MIE201
Deborah Brown
March 16, 2016

American Express Company

NYSE: AXP
60
59

59
58.09 58.29

58
57
56
stock price($)

55

56.8

59.46 59.57

59.43
58.75

57.12

55.58

54
53

dates

I invested American Express Companys stock for this game, because it is the top rated
credit card company. My parents both use American express credit cards for daily purchasing
and small amount loans, and they are satisfied with the great credit performance. In addition,
there were also huge benefits that this company gains from co-brand relationships with Delta,
Starwood, British Airways, Cathay Pacific, and Costco (Lau, 1). I purchased 1,000 shares of
AXP stock with a price of $55.71 per stock. I predicted that I would lose money from my
investment. Because American Express will end the cobrand relationship with Costco and sell its
Costco-banded portfolio service to Citibank this June (Malcolm, 1). The big change may cause
many problems on payment of the Business Card from Costco and American Express for the
following months and decrease the earning of American Express Company. However, I still
generate 6.55% of return from this stock, which is $3,650 gain. Besides the continuing support
from Warren Buffetts company Berkshire Hathaway, the increasng stock price also shows the
American Expresss goodwill and its powerful branding. For forecasting, The Companys ability
to achieve earnings per common share growth between $5.40 and $5.70 for 2016 and at least
$5.60 for 2017, which will depend in part on an acceleration of billed business and revenue
growth (Paukowits and Willard, 5).

Works Cited
Investopedia. Investopedia, LLC. N.p., 2016. Web. 15 Mar. 2016.
Lau, Chris. American Express Stock Is A Value Trap Right Now. Amigobulls.com.
Zacksdata, 2 Feb. 2016. Web. 15 Mar. 2016.
Malcolm, Hadley. Costco Cardholders Will Transfer from Amex to Citi in June. USA
Today 29 Feb. 2016: 1. Print.
Paukowits, Ken, and Toby Willard. Q4 2015 American Express Earnings Conference
Call. American Express Company. SNL Financial LC, 21 Jan. 2016. Web. 15 Mar.
2016.