THE HOUSE OF MORGAN
JPM
I bought some JPM (39) this morning. I am currently underweight financials, and it is about time to add some more here as Fed is about done to raise rate. Large US banks are much cheaper than their Canadian counterparitiesm, and with such strong C$, I might as well own US banks instead. JPM is currently traded at 1.2X of its book value. With the Fed out of way, it may expand to 1.5 or even 2.0 times in the next year, which would take it to 45-60 range, a rather decent return. Jamie Damon is in charge and we could see some productivity gain as well. Not to mention it has almost a 4% dividend yield. I have added quite a few small cap, growth stocks lately. The House of Morgan will provide a nice balance.
I bought some JPM (39) this morning. I am currently underweight financials, and it is about time to add some more here as Fed is about done to raise rate. Large US banks are much cheaper than their Canadian counterparitiesm, and with such strong C$, I might as well own US banks instead. JPM is currently traded at 1.2X of its book value. With the Fed out of way, it may expand to 1.5 or even 2.0 times in the next year, which would take it to 45-60 range, a rather decent return. Jamie Damon is in charge and we could see some productivity gain as well. Not to mention it has almost a 4% dividend yield. I have added quite a few small cap, growth stocks lately. The House of Morgan will provide a nice balance.
posted by ZIGZAG at 12/05/2005 10:32:00 PM
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