Emerald, the challenges Banks have are well known. Investors are all about risk and reward. Apparently they feel the liability is more or less reflected in the price.
JPM will survive this in better shape than just about any other financial institution out there. I agree with th author of this piece and apparently you as well that there may be downside risks in the short term. I am happy to hold it and collect the 4%, even if it takes several years to see this work out.
I think a better and more less risky strategy than shorting is to hold and collect the dividend and accumulate more on weakness.
I highly doubt the July lows will be seen again, but would be buying agressively under $35 if it gets there.
If you are a short term trader, there are better shorts out there than JPM in my opinion.
Why would the author even put a long term short target on JPM of roughly $31?
That represents a roughly 20% return. If you use a year as long term, it costs you 12% a year in margin interest and another 4% in dividends you have to pay.
IF he's right and meets his objective, you can make 4%, what you can get on a CD guaranteed.
On the other hand, he likes JPM long term. Why not collect the 4% plus dividend while you accumulate it - you would make the same as taking the risk to hold it short for a year? Seems like a better strategy to me.
I never understood shorting long term. Too risky, too expensive.
JPMorgan, Bear Stearns: More Smoke from Wall Street [View article]
I would take jamie Dimon's assessment before this guy's any day. Very sloppy piece.
Typical gloom and doomer. Writes first without looking at data - just makes things up to fit his scenario. For example. Pennsylvania is and has been running a deficit. No clue.
Did JPMorgan Almost Fail? [View article]
JPMorgan: Why I'm Selling Short [View article]
JPM will survive this in better shape than just about any other financial institution out there. I agree with th author of this piece and apparently you as well that there may be downside risks in the short term. I am happy to hold it and collect the 4%, even if it takes several years to see this work out.
I think a better and more less risky strategy than shorting is to hold and collect the dividend and accumulate more on weakness.
I highly doubt the July lows will be seen again, but would be buying agressively under $35 if it gets there.
If you are a short term trader, there are better shorts out there than JPM in my opinion.
JPMorgan: Why I'm Selling Short [View article]
That represents a roughly 20% return. If you use a year as long term, it costs you 12% a year in margin interest and another 4% in dividends you have to pay.
IF he's right and meets his objective, you can make 4%, what you can get on a CD guaranteed.
On the other hand, he likes JPM long term. Why not collect the 4% plus dividend while you accumulate it - you would make the same as taking the risk to hold it short for a year? Seems like a better strategy to me.
I never understood shorting long term. Too risky, too expensive.
JPMorgan, Bear Stearns: More Smoke from Wall Street [View article]
JPMorgan, Bear Stearns: More Smoke from Wall Street [View article]
Typical gloom and doomer. Writes first without looking at data - just makes things up to fit his scenario. For example. Pennsylvania is and has been running a deficit. No clue.
ydr.inyork.com/ci_9106...
JPMorgan, Bear Stearns: More Smoke from Wall Street [View article]
.Pennsylvania is and has been running a deficit.
ydr.inyork.com/ci_9106...