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Strategies & Market Trends : BAK - Investing

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To: batman10023 who wrote (359)	3/1/2012 8:44:15 PM
From: xxyy	Read Replies (2) of 3249

JPM is easy to like, though I still like both BAC and C better. JPM gives you a lot less heartburn. Their analyst day talks about $24Bn in earnings they want to hit eventually, and they suspect they will have record profits this year or the next. They are (or at least were, when below TBV) aggressively buying back shares. I think cash returned to shareholders (divs + buybacks) is in the 10% range this year. I guess a little less now that the stock has moved up. Some analyst said "you realize your stock would go up if you spent more on divs." Dimon's response - "exactly." He's got a good approach to buybacks. He's going to get as many as he can when the shares are cheap (I'm not sure what that qualifies as, though - below $40? below $50?). IMO a 10% ROE deserves about a P/E of 10, so if they do hit $24Bn of earnings, I'd expect it to rise a fair bit more. It's kind of funny that JPM probably earns every 2-3 weeks what Facebook earns in a year, but their market caps aren't going to be vastly different.

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