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I am having trouble researching potential companies for my Rule Maker Portfolio. Right now I am trying to run the calculations on American Express and I am not sure my numbers are coming out right.
I have a Sales Growth of 8.4% between '96-'97, and a Sales Growth of 7.7% between '97-'98. Those numbers are a little lower than I would want them to be. Of course I am aiming for the 10% suggested in the RM strategy.
Furthmore I am having difficulty with the Gross Margins. I understand that AXP's revenues in 1998 are $19,132 million. Then I think there total expenses for 1998 are $16,207 million. That only leaves a profit margin of $2,925 million before taxes and $2,141 million after taxes. Does it sound like I am looking at the right numbers? That only leaves them with a Gross Margin of 11%. Isn't that really low for a RM company? Isn't the target supposed to be 50%? Please email me any responses to this. If my numbers are right then why is this a Rule Maker stock company and if my numbers are wrong please help me.

Wilson Kanaday
[email protected]
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