American Express slides
Posted on November 8, 2007
Filed Under American Express, Discover Card, Mastercard | Leave a Comment
AmEx’s stock, a component of the Dow industrials, dropped 3.4% to $56.56, and had down as much as 3.8% at its intraday low of $56.34, which was the lowest price seen since Oct. 22.
Capital One had said in a filing with the U.S. Securities and Exchange Commission on Tuesday that it anticipated 2008 charge-offs of $4.9 billion up to the mid-$5 billions, compared with its previous forecast of just $4.9 billion.
Analyst Kenneth Posner at Morgan Stanley said Capital One’s outlook supports his thesis of broader deterioration in consumer credit, beyond mortgages.
“Specifically, we think the worst part of the housing slump is still in front of us; thus, it stands to reason that as housing deteriorates further, other card issuers will start to observe, analyze and adjust guidance for similar credit quality trends — a potential negative catalyst for the stocks,” Posner said in a research note.
Capital One’s stock was down 8.9% at $54.15, and hit a low of $53.63 in intraday trading, the lowest price seen since September 2003.
Among shares of other credit card companies, Mastercard Inc. slipped 0.6% to $198.30 and Discover Financial Services lost 2.2% to $17.84.
by Tomi Kilgore
Comments
Leave a Reply