I bought AXP when the share was at around 80, then I start to average down at 70. Recently, the shares dropped further to 63.9 when I sold it. I still think AXP will have a lot of competitive advantage despite its recent news with merchandiser. I found greater value in RDS.B, I switch to this stock at about 40.74. The closing on 8/1/2016 was about 39.7.
At this price, the dividend yield is about 9%, less the tax will be 6% yield which is still good. However, with the ongoing turmoil in the Middle East, coupled with oversupply in the states, low demand in China, the oil prices as what GS suggest may hit the 20s/bbl. The Canadian oil is at that range already.
You can never buy the share at its lowest, I think there is a lot of competitive advantage Shell has over other oil majors. The potential merger of BG is already priced in. If things don’t go that way, the share price may bounce back up. If merger takes place, Shell will take the opportunity to do cost cutting in such a competitive landscape to make things work. Short term wise, the share may go further down but I believe in the long term of this stock. I will diligently start to stock up on this business.
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