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JPMorgan Chase & Co.: Banking on Growth Under Jamie Dimon
I feel that wind power is a terrific investment if done in an intelligent way, but this is not the only way that JPM impresses me. JPMorgan wants to be a bank with everything -- with retail banking, investment banking, asset management, and credit card divisions all under one roof. To that end, recently JPMorgan integrated with Bank of New York, where I was a customer. I always say seeing is believing. Bank of New York was suffering from poor performance before JPMorgan stepped in, and already, I see signs of improvement. JPM is also dedicated to controlling expenses at these branches, which will help its retail division.
Even more, I'm a big fan of JPMorgan's innovative and strong-minded CEO, Jaime Dimon, who took the helm of JPM in 2006, coming from Bank One. Particularly strong first quarter results showed a 55% net improvement over the same results last year (though, to be fair, I should mention that in part this was due to a new accounting rule adding a one time gain of $391 million). The investment bank division is going gangbusters while retail banking and card services are showing flat growth, but I think this is about to change.
Acquisitions made in the past will continue to eat at profits, but under Dimon, the bank has set specific goals in each division to smartly cut costs and drive profits. I think we're going to see JPMorgan make solid gains in the coming years.
Type of stock:
The third largest bank in the U.S., I think JPMorgan has great
potential under Jaime Dimon, its CEO since 2006. JPM has been careful
not to overextend itself in this period of economic prosperity, a
prudent move in these rapidly changing economic times.
Price target: Currently trading at $49.82, I think this is one of the few financial institutions that it is a good buy right now. We should see JPM hit $65, maybe even by year's end.
hilaryonstocks at 1:42:00 PM EDT Blog about this entry |
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Now you are talking. Jamie is the smartest on Wall Street. The man running Morgan Stanley may be a close second. Jamie will develop his plan to diversify through the world. Bet on him.
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I think you are right that it is a good investment (in comparison with Bank A or Citibank) but to think it will reach that high --up thirty percent as years end is very optimistic but what they hell.
6/16/07 1:31 AM
I'd like to see Hilary break free from her computer for six weeks and join a health farm.
She loves to write and most of the time it shows.