Friday, May 11, 2012

Free Tip - JPM

I am offering a free tip today.  Buy JP Morgan (JPM). 

Ignore the trading loss which amounts to less than one half of one quarters profits and buy this stock for 8 times earnings.  Jamie Dimon will clean house and things will be taken care of ASAP. 


Best Regards,
Kevin


Disclosure: None

8 comments:

  1. and BAC, MS, and C? Dick Bove lowered estimates on JPM to $4 from $5 this year. He did say JPM will make 16billion this year and next year 22Bill.

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  2. I like BAC, as has been previously mentioned on this blog before. They are in terrific shape from a capital perspective.

    I don't like C becuase of the exposure to emerging markets. China slowdown will effect those places and C has big exposure there.

    No comment on MS, other than they might have some big troubles if Europe falls apart. I would take GS over MS any day. GS is soundly capitalized and selling for less than tangible book.


    Regards,
    Kevin

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  3. MS exposure to PIIGS is 2.4 billion and over 4bill in France http://www.bloomberg.com/news/2012-04-19/morgan-stanley-giips-net-exposure-drops-to-2-41-billion.html

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  4. I'd love to hear a more in-depth value breakdown of investing in JPM. Its shares are still going down increasing the opportunity you mentioned.

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  5. Dear Anon,

    We'll see when I can get to it. I am going to enjoy a weekend away with my family this long weekend.

    Kevin

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  6. Hi Kevin,

    I think your right on with JPM. I would wait a little for lower prices, there could be some more bad news to come out. The day to buy might be when Jamie Dimon has to testify to a congressional or CFTC panel, which will be splattered all over the cable business news channels. It should make for some good reading, when the details come out.

    Andre DesRoches

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  7. Kevin, Does it make any difference to you that the losses are now probably as much as 9 billion? Wouldn't that make it more than 1/2 of the entire year's profit?

    See, e.g., http://www.businessinsider.com/jpmorgan-trading-loss-possibly-9-billion-2012-6

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  8. Thanks Peter,

    The losses may possibly be $15 billion, $1 billion or $100 billion. Do you have a guess on how much it may be? It's sure fun to speculate isn't it?

    So in response this makes no difference. From the FACTS as we now know them, the losses are more than manageable.

    This is a classic case where the market is over reacting. The loss is not reoccurring and or damaging to the company in the long term. The question is would you buy a company with over twenty billion in earnings power for six odd times earnings. The capital base of the company will grow this year.

    Regards,
    Kevin

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