If you're a regular reader, I'm sure you already know from earlier blogs that I'm a fan of smart investments in green stocks. JPMorgan Chase & Co. (NYSE: JPM) is not only the third-largest U.S. bank, it also has a $1 billion portfolio of wind energy investments. Its 26 wind farm investments, included in the portfolio, have enough juice to power an average of 600,000 U.S. homes.
I feel that wind power is a terrific investment if done in an intelligent way, but this is not the only way that JPM impresses me. JP Morgan wants to be a bank with everything -- with retail banking, investment banking, asset management, and credit card divisions all under one roof. To that end, recently JP Morgan integrated with Bank of New York, where I was a customer. I always say seeing is believing. Bank of New York was suffering from poor performance before JP Morgan stepped in, and already, I see signs of improvement. JPM is also dedicated to controlling expenses at these branches, which will help its retail division.
Even more, I'm a big fan of JP Morgan's innovative and strong-minded CEO, Jaime Dimon, who took the helm of JPM in 2006, coming from Bank One. Particularly strong first quarter results showed a 55% net improvement over the same results last year (though, to be fair, I should mention that in part this was due to a new accounting rule adding a one time gain of $391 million). The investment bank division is going gangbusters while retail banking and card services are showing flat growth, but I think this is about to change.
Acquisitions made in the past will continue to eat at profits, but under Dimon, the bank has set specific goals in each division to smartly cut costs and drive profits. I think we're going to see JP Morgan make solid gains in the coming years.
Type of stock: The third largest bank in the U.S., I think JP Morgan has great potential under Jaime Dimon, its CEO since 2006. JPM has been careful not to overextend itself in this period of economic prosperity, a prudent move in these rapidly changing economic times.
Price target: Currently trading at $49.82, I think this is one of the few financial institutions that it is a good buy
right now. We should see JPM hit $65, maybe even by year's end.
Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com
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Reader Comments (Page 1 of 1)
6-12-2007 @ 10:14AM
ro said...
Chase is the number one worst credit card provider, don't believe me check their ratings online. They may be investing green, but they are doing so at the cost of massive abuse and usury of their customers, many of whom were simply captured by Chase Madhatter when they were allowed to buy the issuing companies.
In short, no one is investing green if they treat people so badly that they become alienated enemies of our system. The only reason that outfits like the Madhatter can function at all is that the people of this country have not sunk to a matching level of degenerate weasality, as amply demonstrated by this criminal giant! But that won't last long, do you really want to live in a country where the operating mode of interplay is rape?
6-13-2007 @ 9:28AM
Geoff Davidian said...
Chase Bank and Jamie Dimon are defendants in a Wisconsin racketeering lawsuit. Adoration is fine so long as the article balance out the alleged criminal activities along side the smart investments. Otherwise you do a disservice to your readers. See www.putnampit.com/shorewoodvillage/Chase/banker.htm