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Thursday, May 10, 2012

What JPM giveth, JPM taketh away

JPM giveth. Around March 13th JPM front loaded the stress test results and announced a huge buyback and nice dividend increase. This caused the SP500 to break out, and start a new trading range.

JPM taketh away. Tomorrow, JPM maybe the straw-that-breaks-the-camel's-back on the SP500.

Sucks to be a bull right now, especially a bull buying JPM as it got very oversold. (Here's looking at you kid, as I stare at myself in the mirror typing this :) or rather, :(

Even as I am annoyed at the development, after listening to the JPM conference call Dimon is still one of my favorite CEOs. The shit he says just makes me laugh, in a good way.

My biggest concern was a retraction of the buyback and dividend. But after listening to the issue, and potential losses, I think they can off-set them across their other businesses. The only pisser was that he left the uncertainty open for a 1-2 quarters.

Perviously, Dimon made it clear that they will be using the $15Billion buying back below 45. Well, the stock will open tomorrow about 15-16% below their target. If this issue really is a potential blimp to an other wise healthy company, they should be.

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