American Express was up 6% near the market-close on Friday as information emerged that Value Act Capital Management may have acquired a nearly 5% stake in the firm. According to American Express spokeswoman Marina Norville:
"ValueAct is a well-respected firm. We have been speaking with them, as we do with other investors, and look forward to continuing a constructive dialogue."
It's good news if it turns out ValueAct has taken a position because it sends a signal to the market that some smart money believes the stock has upside. Additionally, as an activist investor, ValueAct may pressure American Express management to make some changes to the company to help bring out the value.
If it turns out ValueAct has not taken the position then the stock will likely give back some (or all) of the gains. Regardless, we at Blue Harbinger believe in American Express. You can read our original thesis here.