Friday, January 16, 2015

Seeking Alpha: JPMorgan Chase Once Again Fails To Inspire

Uninspiring core profits (usually referred to as pre-provision operating profit) has become a theme for JPMorgan Chase (NYSE:JPM), and once again, this giant U.S. bank delivered a result that was shy of analyst and investor expectations. Add in some concerns about potentially higher capital requirements and a 10-year interest rate back below 2%, and I don't blame investors for selling this bank.

That said, I am still holding on to these shares, and I continue to believe that the Street underestimates the core earnings potential of this bank. JPMorgan is definitely levered to higher interest rates, but management has its own internal levers to pull as well - particularly where it concerns ongoing expense reductions and growing its commercial bank operations. With the shares looking 15% to 20% undervalued, I continue to believe JPMorgan is one of the better alpha opportunities among the large banks.

Read the full article here:
JPMorgan Chase Once Again Fails To Inspire

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