tag:blogger.com,1999:blog-5389144729834496735.post4810685207195485295..comments2024-03-17T05:15:55.634-04:00Comments on The Brooklyn Investor: JPM Investor Day 2013Unknownnoreply@blogger.comBlogger13125tag:blogger.com,1999:blog-5389144729834496735.post-83393358918641738842013-03-14T08:37:10.932-04:002013-03-14T08:37:10.932-04:00The warrants are publicly traded. No need for a PB...The warrants are publicly traded. No need for a PB. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-74143783004623660922013-03-14T04:29:40.736-04:002013-03-14T04:29:40.736-04:00that's assuming your big and important enough ...that's assuming your big and important enough where your PB will find you some to buy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-21991252210903843852013-03-09T15:43:54.905-05:002013-03-09T15:43:54.905-05:00Im not a big fan of banks JPMorgan chase or any ba...Im not a big fan of banks JPMorgan chase or any banking stock for that matter. Its really hard to figure out what a bank owns. Many investors may be unaware that their are warrants that trade on all of the major banks including JP Morgan. The warrants were issued to the governmant by the banks in exchange for the bailout assistance. The tarp warrants trade for pennies on the dollar and they do not expire until late 2018. You could get the same amount of gains or much greater gains buying the tarp warrants than you would get buying the stock for just a small fraction of the amount of money that it would take to buy the stock. That is if the large money center banks perform well over the next five years.QUALITY STOCKS UNDER 5 DOLLARShttp://www.zipleaf.us/Companies/The-Manhattan-Calumet-Value-Stock-Hotlinenoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-28688843955151343072013-03-04T12:59:16.911-05:002013-03-04T12:59:16.911-05:00Hi,
Thanks, I did see that and I agree with him....Hi, <br /><br />Thanks, I did see that and I agree with him. I was surprised last year when it says book value isn't important. This made no sense as he really like ROE as a measure of performance, but now seeing this segment it's clear to me that what he meant was that the p/b ratio is not important in evaluating banks. <br /><br />He says if a bank earns high returns on tangible assets, it will trade at a high price to tangible book ratio and if the return is below one, it will trade at less than tangible book or something like that. <br /><br />And that makes perfect sense. You always year people saying that this or that bank is cheap because it's at 0.5x book, but it doesn't matter if that bank earns an ROE of 3% or 5%. It's not a cheap stock at all. <br /><br />So in that sense, what's more important is earnings when valuing banks, not book value. <br /><br />In the above JPM case, first we establish that it can earn at least 15%/year, and only after getting comfortable with that do we then say JPM is worth 1.5x tangible book. <br /><br />As for BAC, he sees it being worth much more in 8-9 years. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-11178251932161737502013-03-04T12:38:53.262-05:002013-03-04T12:38:53.262-05:00Thought you'd appreciate this. Buffett talks a...Thought you'd appreciate this. Buffett talks about looking at bank earnings and not bank book values; sounds like he's not too excited about BAC and C, and isn't shocked that they are trading below tangible book.<br /><br />http://video.cnbc.com/gallery/?video=3000151816&play=1Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-30498334901153674142013-02-28T20:01:01.490-05:002013-02-28T20:01:01.490-05:00Hi,
Thanks for asking. Actually, it would be mo...Hi, <br /><br />Thanks for asking. Actually, it would be more accurate to say that Dimon outperformed since 2000. For the period between 2000-2004, the stock price of Bank One is used, and then after ONE is merged into JPM, the JPM stock price is tracked. So it's the return you would have gotten if you bought Bank One stock when Dimon joined. <br /><br />If you look just at the current JPM stock going back, the results will show the old JPM before 2004. <br /><br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-19716342052661142872013-02-28T19:50:35.036-05:002013-02-28T19:50:35.036-05:00when you say that JPM outperformed since 2000, wha...when you say that JPM outperformed since 2000, what exactly are you talking about? not the share price for sureAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-57885935622888600692013-02-28T16:24:18.066-05:002013-02-28T16:24:18.066-05:00Hi,
Yes, these banks have TARP warrants outstand...Hi, <br /><br />Yes, these banks have TARP warrants outstanding. I did't mention that. You can buy the warrants, or use LEAPs too for sure. <br /><br />Thanks for reading. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-27210686958762741152013-02-28T15:56:35.558-05:002013-02-28T15:56:35.558-05:00Hi Have you considered JPM warrants as a vehicle t...Hi Have you considered JPM warrants as a vehicle to maximise your return?<br /><br />If your view is for the bank to achieve that level of return, it seems that the warrants are the way to take advantage of this situation?<br /><br />I really enjoy reading your posts<br /><br />Best regards<br /><br />DamoAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-78116606340540921062013-02-27T23:29:35.674-05:002013-02-27T23:29:35.674-05:00Hi,
Oh no, I wasn't trying to hint that, act...Hi, <br /><br />Oh no, I wasn't trying to hint that, actually. I just remember he said he owned a million shares in a interview on TV last year, I think. <br /><br />I think he said that the whale loss hasn't changed his views on Dimon and JPM implying that he will hold the shares despite that loss. <br /><br />Since then, I don't believe anything has really happened to make him want to sell the shares. <br /><br />If he does sell, I would imagine it would be at much higher prices. <br /><br />Thanks for reading. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-67215289718701118432013-02-27T22:51:21.720-05:002013-02-27T22:51:21.720-05:00Hi,
I tried to check this out on my own but it wa...Hi,<br /><br />I tried to check this out on my own but it wasn't clear: did Buffett sell his private JPM holdings? It seems like you were hinting that. ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-4552355313592164842013-02-27T13:13:58.713-05:002013-02-27T13:13:58.713-05:00Hi,
Thanks. I do own a bunch right now. I'v...Hi,<br /><br />Thanks. I do own a bunch right now. I've owned some for a very long time (since Dimon joined Bank One), but it has always been a small, token position. It was never particularly cheap to me. This changed during the crisis and I bought a bunch in late 2008 early 2009. Then I lightened up after it recovered. <br /><br />And then in late 2011 it started looking cheap again so I loaded up and last year too. <br /><br />I do intend to lighten up when it gets to a more reasonable valuation but would still probably continue to hold at least a token position even at fair value. <br /><br />Thanks for reading. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-46798291320816918102013-02-27T13:03:50.325-05:002013-02-27T13:03:50.325-05:00I enjoy your insights - thanks for sharing. Just ...I enjoy your insights - thanks for sharing. Just out of curiosity, do you own JPM? Anonymousnoreply@blogger.com