J. P. Morgan Valuation Confirms Its Current Bearish Inflection Point
Steven Bauer submits:
J. P. Morgan Chase & Co, Inc. (JPM) has had and continues to have mediocre management that continues to create problems for its customers and the economy. However it is a very stable and consistent organization. Some may think that trading in a similar manner with the indices (Dow, S&P, etc.) is wise. I disagree, with several caveats. Over the past decade (particularly the last four years) it has not been a profitable place to have invested your money. This company continues to qualify as a “quality” firm. Keep in mind that there are other, often smaller, banking firms that have produced a far better investor ROI over recent years. Earning estimates on balance are definitely positive for the near-term, but should be improving. How the Street will reward or punish JPM or any other company in the future is always questionable. It appears, according to comparative analytics, that the upside is quite limited and that the downside currently has more appeal. My analytics, to a large degree, have to do with comparative analytics. Comparing JPM with its peers and other top capitalization/revenue producing companies in general, provides a clear and only modestly positive story of both the company and the banking industry group. Timely news includes the fact that higher projected earnings growth in the near-term is a strong plus. J. P. Morgan, like others is submerged in the foreclosure arena and serious concerns loom. The good news is that they are making a strong effort to keep peopleComplete Story »
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