JP Morgan results a beat, but market still uncertain about prospects

JP Morgan released results that looked decent at face value, it was not just me that thought that, I saw a couple of analyst notes that the business itself was solid, with sound fundamentals and it was just the very average outlook that dented the stock. And the market predictorbots are expecting the company to make in the region of 5 Dollars worth of earnings next year and around 10 percent more the year after that. Huh? The stock trades currently 31.60, that was down 4.82 percent yesterday in the session. That tells you what those types thought, thanks but no thanks.

It is the second largest bank in the US, so I am guessing that its role in the economy is bigger than most regional blocks around the world. The biggest hits that earnings took (and perhaps this is where all the focus was), was in the trading and investment banking arena. I see. The old business, the retail portion fared a whole lot better, with credit card revenue up 7 percent (I see, so people are spending) and their mortgage business doing really well. Cheap refinancing and lower rates no doubt finally starting to knock around, leading to higher division profitability and contribution. Although the backlog in housing needs a serious clearing still. Still, these are the kind of businesses that we struggle to come to grips with, we like the good old fashioned side, but not the parts where bank employees are basically having a go with shareholder capital. That does not sit well with us. If you are however looking for a well run outfit, this might just be your vehicle. I like Jamie Dimon. Never met him though and perhaps unlikely ever to do so.