Dueling Fools
October 28, 1998
A Duel in Charge
American Express price (10/27/98): $86 15/16
Will we ever become a cashless society? Will all transactions become nothing more than mere card swipes? American Express <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AXP)") else Response.Write("(NYSE: AXP)") end if %> plans to play a part in the golden era of plasticity. From credit cards to travel agencies to Oscar winner dresses -- can it be Amex, and not Visa, that is everywhere you want to be?
Of course we can't all agree. This week Paul Larson (TMF Parlay) and Bill Barker (TMF Max) are Dueling Fools. Paul thinks you should buy American -- Express, that is. On the other side of the fence, Bill is shaking his head. Who will win this financial fracas? Read on. The American Express Duel -- Don't leave Fooldom without it.
And don't miss this week's Duel Flashback, where we take a look back at who held the winning hand in the Trump Hotel & Casinos <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DJT)") else Response.Write("(NYSE: DJT)") end if %> Duel.
You Get to Vote!
Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.
[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]
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The Bull... I would venture that 99% of those reading this feature know exactly what American Express is. This speaks volumes about the brand strength the company has built over the years. In fact, it can be argued that American Express holds one of the highest-regarded brands in both travel and financial services. Not only is the brand a strong one that can be leveraged going forward, but the company is currently trading at a very reasonable valuation. For these reasons I find being anything but bullish on the company to be out of the question. Continue... |
The Bear... Let's start by examining the long-term worth of Amex's highest profile component: the American Express Card. The Card, while not accepted at as many locations as the standard no annual fee Visa or Mastercard, nevertheless charges a yearly minimum fee of $55. How does one explain that, and how long can it last? Continue... |
Results for last week's News Corp. Duel
| Answer | Percentage |
| I can't make up my mind | 2% |
| TMF Puck's Bull argument |
59% |
| TMF RFK's Bear argument |
29% |
| They were both excellent |
12% |
| They were both lame |
2% |