Tag Archives: JPMorgan Chase & Co

JPMorgan Chase & Co will report earnings while we are entering a rate-cutting cycle

The banks are in focus this week as they will report earnings with JPMorgan Chase coming out with their report Tuesday morning before the open. JPMorgan has outperformed its peers and their growth has been 18% per year last three years.

Last two years, JPMorgan Chase has beaten Earnings Per Share estimates 100% of the time. They have also beaten revenue estimates 100% of the time.

Analysts expect JPMorgan to earn $2,50 per share in the second quarter on revenue of $28,91 billion. JPMorgan earned $2,22 in the second quarter last year.

JPMorgan is different from Well Fargo which is also reporting earnings on Tuesday. JPMorgan Chase has moved up over 10% over the past year while Wells Fargo has faced a lot of obstacles, inkluding lack of their own CEO.

The banking industry is scary to me at the moment, and the most dangerous bank in the world is in Europe. Dutche Bank has been a desaster for a long time and the company are on the edge. A collapse could send the whole world in a negative trend.

We are also entering a rate-cutting cycle which is not good for the banks either. The margins will shrink and the earnings will decline while the rates are falling and the spread between the rates on loans and the rates paid out on deposits shrinks.

Morgan Stanley and Citi both downgraded the industry as a whole because of this development with rates, but JPMorgan is still a favorite.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stock market, Stocks, Uncategorized

Some banks are trading at record low

«Money makes the world go around», and most of the money in this world is in the banks. Simply because it is their product. They sell money like hot dogs on the corner. How hot are bank stocks at the moment?

Bank stocks have plummeted so far in 2016. Some of them are trading at 25 – 30 percent of their book value. A brutal start of the year for the banks, and the question is when is the time to jump in again?

bankstocks3

Stoxx 600 Banks Index is down nearly 30% and tells us that the market is oversold. Normally it`s oversold at 30, but now it is below 20. It is the lowest ever! The valuation of the European stocks is 13 times estimated earnings, which is down from its peak at 17.

Many investors obviously jumped in today and lifted the European stock market. A rebound in bank stocks lifted the marked up from its lowest level since 2013, and Deutsche Bank AG announced earlier today that they will buy back about $5,4 billion in bonds.

Deutsche Bank AG is up over11% on the news on friday. Credit Suisse is up over 6%. Many bank stocks are up on friday. Not only in Europe. JPMorgan Chase & Co, which is nearly ten times larger than Deutsche Bank AG is also up about 8% on friday (12:30 pm New York).

Many of the bank stocks did never rebound from the peak in 2007, and many of them are trading at record low levels. How easy is it for the banks to do business with low rates and low oil prices in the middle of a currency war?

Fed Chair Janet Yellen said in the testimony this week that the turmoil in the financial markets are threatening the stability and bank stocks are contributing. Thomas Jefferson said in 1816; «I sincerely belive…. that banking establishments are more dangerous than standing armies.»

That`s 200 years ago!

cropped-sbwood.jpg

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stock market