AXP pays off (Swapped Discover for American Express)

We traded Discover for AXP, when discover was spun off from Morgan Stanley. We also built a position in AXP when it went lower on July 2nd.

Our buy/swap recommendation that was made on July 2nd when the stock was trading at around $61.5 can be found here.

Our full position averages around $60. Today’s upgrade from Goldman Slacks paid off well. But, we are holding onto play this quarter’s earnings, when other analysts would upgrade it to take it high, higher and higher. And then we get out sneakily. hehehe Forgot to mention did you collect the dividend (penny and a dime) ;)

Snitzell out, if you were into this very short term. But we are holding on tight to this one atleast a few sessions past earnings.

Congratulations, if you bought AXP at $61.5 on our recommendation.

Your Adarsh.

Trade update. (Discover, Morgan Stanley, American Express, Master Card)

We flipped most of our Discover Financial Services (DFS) position with American Express (AXP) on Monday - July 2nd.

DFS sold at $27.9

AXP bought at $61.5

We like AXP better than DFS. Moreover, we opine AXP will has a better run up compared to MA in the second half. Though we like MA in the credit card industry…considering the latest run since May after the earnings report…..we are waiting on such a run from AXP. Counting on AXP to hit back from the latest dip down.

OUR NEXT BET IS ON AMERICAN EXPRESS.

Our core Morgan Stanley continues to go higher.

Good Luck.