Seeking Alpha

JPMorgan at highest since Dimon took over

  • More investigations please. JPMorgan (JPM +1%) crosses $58 per share for the first time in Jamie Dimon's CEO tenure (which began on Dec. 31, 2005). This compares to a $53.20 peak ahead of the financial crisis (the stock was in the 60s prior to the Internet bubble crash).
  • More importantly, the recent run has brought the shares above their book value of $52.01. Bank of America, Citigroup, and Morgan Stanley remain below book, though Morgan is close to breaking through.
  • In many ways, JPMorgan is better-run than before the financial crisis, says UBS' Derek De Vries, noting ROE of 18% for the year's first nine months compares to 12% during the same period in 2006 and 7% in 2005. Pointing to the rising dividend payout ratio (34% of earnings this year compared to 23% a year ago), RBS' Gerard Cassidy, says regulators won't let the bank do anything else with its money. "If you were a high-tech stock ... being called a utility would kill the stock price ... but being a financial called a utility is very positive."
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Comments (4)
  • medzjohn
    , contributor
    Comments (265) | Send Message
     
    Doesn't matter what you do as long as the Fed is your uncle.
    25 Nov 2013, 11:50 AM Reply Like
  • RS055
    , contributor
    Comments (2791) | Send Message
     
    erm - correction, They are the Fed's uncle. Jamie sits on the board of the NY Fed. he represents the owners of the Fed.
    25 Nov 2013, 06:08 PM Reply Like
  • RS055
    , contributor
    Comments (2791) | Send Message
     
    oops - apologies, just googled it - seems he has left his board seat at the NY Fed as of January 2013. No successor named?
    25 Nov 2013, 06:11 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    where the market goes the Fed follows. no need for a board seat. it's not like the Government Banks aren't making a fortune here...which makes me wonder where the lending is going to go out to from Morgan..other than Wall Street of course. It's not like there is a problem raising capital in the open market either...so i'm not saying "if i'm Morgan Stanley hang up the phone when JP calls" but i am saying probably not a bad time to kick the tires on Morgan Stanley. I'm waiting for the new year before making any changes. outside of commodity plays which could get crushed here from tax loss selling i really think the Fed is going to double top these treasuries and flatten that curve...but we'll see.
    25 Nov 2013, 09:23 PM Reply Like
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