

We will need to see a better than expected payroll number on Friday. Regardless, I am playing specific names, for specific reasons. Case in point, AXP. The third largest card processor, by a mile, did not settle. Personally, I can see why. There are 4 major card processors: V, MA, AXP and Discover. Visa and MA being the clear winners. Arguably a duopoly, although AXP has made great progress. Yet the DOJ is attacking the competition of the duopoly. Makes little sense to me, but I understand the DOJ's complaint is not about market share and about 'terms'.
As AXP declined, it became inexpensive with respect to the improving loan quality and technically has approached the bottom end of its trading range while being oversold. So I became interested.

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