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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (21728)	7/21/2005 12:30:22 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78666

re C, BAC and JPM. I admit i have not looked at JPM for a while. I found it inferior to BAC and C a few years ago, since there is not valuation incentive to buy JPM compared to it's brethen i don't really see a reason to look into this matter. C's pension liabilities appear to be very low. According to the latest 10k C has contributed about 200M$ total and the plan has no deficit. That's nothing for a company with 20B$ earnings. Cramer's talk to buy the best of breed is nonsense, IMO. You pay a much higher average multiple if you buy a mix of each business line. C's retail banking and it's card business are reasonably well managed. It's also hard to come up with an equivalent if C's international retail business which is 40%+ of the revenue. C is much simpler than it was 2 years ago. Insurance, various commercial lending business and the fund management are gone. What's left is the old money center core, brokerage but most importantly retail banking and credit cards. The conglomerate discount is probably in the order of 20%+ (compared to sum of parts valuation) which is why I am interested in C in the first place. But again, I am value investor and Cramer apparently is not.