JPMorgan (JPM) is one the largest and most diversified bank in the U.S., and offers services such as retail banking, commercial banking, asset management, investment banking, consumer lending and credit cards. Its main competitors include Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS), Deutsche Bank (DB) and Morgan Stanley (MS).

JPMorgan has benefited from a decline in provisions for credit losses that raised operating margins for its retail banking business. However, a weak economic recovery has resulted in a decline in average interest earning deposits and presents a potential concern for the multinational bank.

Continue reading JPMorgan: Upside and Downside Scenarios

JPMorgan: Upside and Downside Scenarios originally appeared on BloggingStocks on Fri, 18 Feb 2011 11:30:00 EST. Please see our terms for use of feeds.

UBS (UBS), which is the biggest bank in Switzerland, has had a long road to recovery. But according to its fourth-quarter report, it looks like the firm is finally getting back on its feet. Net income increased by 7.1% to $1.35 billion. Actually, the firm was profitable for all of 2010, which was the first time since 2006.

There were some headwinds in the quarter, though. One was the strength of the Swiss franc. Also, UBS had to make some adjustments because of the changes in the fixed income market.

Continue reading UBS: Getting the Trust Back

UBS: Getting the Trust Back originally appeared on BloggingStocks on Tue, 08 Feb 2011 12:30:00 EST. Please see our terms for use of feeds.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"After two years of economic declines, even the small uptick in growth we are starting to see should be a tonic for America's battered banks," says Jim Powell.

The editor of Global Changes & Opportunities Report explains, "Of the major U.S. banks, I think Citigroup (C) offers investors the most promise; as such, I am selecting the stock as my top pick for 2011.

Continue reading Top Picks 2011: Citigroup (C)

Top Picks 2011: Citigroup (C) originally appeared on BloggingStocks on Fri, 07 Jan 2011 17:00:00 EST. Please see our terms for use of feeds.

The general feeling of investors right now is that we are at a potential turning point in the economy. The final piece of the economic puzzle is for the jobs market to start showing strong gains and the final piece of the puzzle for the stock market is for financial stocks to stage a big and sustainable rally. We might be right on the precipice of both of those things happening. Investors still have an opportunity, however, to get in on the ground floor in a number of names.

The most compelling name in this space could be Morgan Stanley (MS), which has found itself on the back burner this year, particularly compared to Goldman Sachs (GS). While both stocks have struggled in 2010, GS is going to finish the year on a high note. In the last six months, the shares have risen nearly 21% compared to a gain for MS of under 1%.

Continue reading Morgan Stanley Could Have Big Upside

Morgan Stanley Could Have Big Upside originally appeared on BloggingStocks on Thu, 16 Dec 2010 11:30:00 EST. Please see our terms for use of feeds.

Patience appears to be paying off with the Bank of New York Mellon (BK), which I first wrote about on April 6, 2009, at a price of $28.16.

Moreover, the Bank of New York, a premier bank and wealth manager, is a good stock to be patient with. BK's 30% summer swoon found support, as forecast, near $23, and the stock has since moved back above $27 and the key, 50-day moving average.

Continue reading The Bank of New York: As Solid as Manhattan Schist

The Bank of New York: As Solid as Manhattan Schist originally appeared on BloggingStocks on Thu, 11 Nov 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Is Now a Good Time to Consider The Bank of New York Mellon?

Is Now a Good Time to Consider The Bank of New York Mellon? originally appeared on BloggingStocks on Wed, 21 Jul 2010 17:00:00 EST. Please see our terms for use of feeds.

"This month we are beefing up our Northern exposure with a Canadian bank: Toronto-Dominion (TD)," says growth and income specialist Stephen Leeb.

The editor of The Complete Investor explains, "Financial institutions offer leveraged exposure to the entire economic system. With Canada's upside greater than most, adding another bank makes good sense. By total assets, market cap, and adjusted net income, Toronto-Dominion is Canada's second-largest bank.

"And it's not only a force to reckon with in Canada, it has a large and growing presence in the U.S., where it ranks among the top 15 banking companies. It also has the distinction of being one of only three Aaa-rated banks on the NYSE and was the rare bank to not cut its dividend during the financial crisis.

Continue reading Toronto-Dominion (TD): Northern Exposure

Toronto-Dominion (TD): Northern Exposure originally appeared on BloggingStocks on Fri, 25 Jun 2010 13:50:00 EST. Please see our terms for use of feeds.

The financial sector has been a strange double-edged sword in portfolios over the past two years or so. In the wake of the Lehman Brothers bankruptcy, billions of wealth was erased in what were long thought of as conservative stocks. Then the resurgence of some banks since the lows of last year made other investors a fortune, with Citigroup (C) and Bank of America (BAC) both soaring about 300% since historic lows on March 9, 2009.

The drama continues in the financial sector even now with the endless see-saw of mortgage default news and the continued worries over sovereign debt in the eurozone. Any investor jumping into financial stocks right now is really taking the tiger by the tail -- but if you do your homework, there a number of opportunities in the sector become clear -- particularly among financials in Latin America.

Continue reading Three Booming Latin America Banks

Three Booming Latin America Banks originally appeared on BloggingStocks on Tue, 01 Jun 2010 13:40:00 EST. Please see our terms for use of feeds.

Continue reading The Bank of New York Mellon: Well-Positioned for the Next Asset Management Wave

The Bank of New York Mellon: Well-Positioned for the Next Asset Management Wave originally appeared on BloggingStocks on Tue, 06 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading The Bank of New York Mellon Is Undervalued

The Bank of New York Mellon Is Undervalued originally appeared on BloggingStocks on Thu, 14 Jan 2010 17:30:00 EST. Please see our terms for use of feeds.

In his Invest with an Edge, he explains, "One bank in particular is exerting itself again as a dominant player: Wells Fargo & Company (NYSE: WFC)." Here's his review.

"The painful declines in bank stocks appear to have stopped for now, as bank stocks have exploded off the March lows. As we've observed, financials have 'friends in high places.'

"Banks in general are showing promise as credit becomes easier. There's still a long way to go for complete recovery, but the trend is pointing up.

Continue reading Wells Fargo (WFC): 'Ride the financial wave'

Wells Fargo (WFC): 'Ride the financial wave' originally appeared on BloggingStocks on Fri, 09 Oct 2009 15:20:00 EST. Please see our terms for use of feeds.

"Citigroup (NYSE: C) used to be the world's #1 bank; it is now ranked #15 after the financial crisis," points out long-standing investing and trading expert Mark Skousen.

Yet, in his premium Hedge Fund Trader service, the leading advisor ranks the bank as a speculative buy. Here's his review.

"The stock fell to $1 a share from $40 a share two years ago. But now Citigroup is showing some breathing room after selling Smith Barney to Morgan Stanley for $6.7 billion and pushing revenues up to $34 billion.

Continue reading Insider buying at Citigroup (C)

Insider buying at Citigroup (C) originally appeared on BloggingStocks on Fri, 21 Aug 2009 11:00:00 EST. Please see our terms for use of feeds.

Are financial stocks a buy now? Jeffrey Palma, a strategist for UBS says yes. He is recommending a modest "overweight" for this sector. He goes on to say that financials had the biggest gains among 10 industry groups in the MSCI World Index in the second quarter.

Let's be clear here. Mr. Palma is referring to the second quarter. The second quarter is done, finished. The real question is whether or not, going forward, the rally will continue.

Continue reading Are financial stocks still a buy?

Are financial stocks still a buy? originally appeared on BloggingStocks on Wed, 01 Jul 2009 12:20:00 EST. Please see our terms for use of feeds.

• Profits for the bans are up.
• Bank stocks are surging.
• The U.S. government gave 10 banks permission to pay back $70 billion of TARP monies.
• Since January, banks have raised $200 billion and sold $75 billion in debt.
• Stress tests showed that 19 of the biggest banks needed only $75 billion to withstand a tougher than expected recession.
• In a press conference, U.S. Treasury Geithner said, "these are early signs of repair and improvement."

Continue reading What is the good and the bad about the condition of our banks?

What is the good and the bad about the condition of our banks? originally appeared on BloggingStocks on Fri, 12 Jun 2009 14:00:00 EST. Please see our terms for use of feeds.

"Hudson City Bancorp (NASDAQ: HCBK) is a fortress of safety with plenty of upside potential," says value investor Nathan Slaughter.

In his Half-Priced Stocks, he explains, "The 140-year old bank is a classic example of the tortoise and hare fable. Its slower, measured approach has paid off handsomely and keptit at arms length from the problems plaguing other banks."

"Hudson City manages a network of 130 bank branches spread throughout affluent regions of New Jersey, New York and Connecticut. At last count, the firm had over $20 billion in deposits and approximately $56 billion in total assets.

"According to an independent study, this tight-knit institution has been rated one of the nation's three strictest mortgage underwriters. So when most other banks relaxed their standards in recent years to attract riskier clientele, Hudson City stuck to its conservative roots and refused to budge.

Continue reading Hudson City (HCBK): 'Best in breed' bank bet

Hudson City (HCBK): 'Best in breed' bank bet originally appeared on BloggingStocks on Thu, 11 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.

Continue reading UBS narrows quarterly loss after write-downs

UBS narrows quarterly loss after write-downs originally appeared on BloggingStocks on Tue, 05 May 2009 08:16:00 EST. Please see our terms for use of feeds.

If you follow the bank stocks, you noticed the latest earnings were very good. Bank of America (NYSE: BAC) showed earnings that almost tripled. Citigroup (NYSE: C) lost 18 cents a share, but that was much better than the 34 cent loss analysts expected, and way better than the $2.44 it lost in the last quarter of 2008. Wells Fargo & Co. (NYSE: WFC) pre-announced it would have great earnings. Then delivered record results. But all of these stocks are well off their recent highs. Why is that?

It has to do with the quality of earnings. In other words, what was the source of this new-found land of profitability or in the case of Citi, lower loss? Investors like ongoing, predictable earnings. In the case of banks, that means loans such as mortgages or credit cards to worthy borrowers. But that isn't where banks got their profits this quarter. Instead, they came from investment banking and trading.

Continue reading Comfort Zone Investing: Earnings are up, but stock price is down. So what's really up?

Comfort Zone Investing: Earnings are up, but stock price is down. So what's really up? originally appeared on BloggingStocks on Sat, 25 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.

As the three-day Easter weekend approaches, volume is declining as both traders and investors shy away from a market that is fraught with uncertainty.

Not only are the Q1 earnings in doubt, but longer-term economic analysis by the ChangeWave team indicates that we can expect to see a trading range of 700 to 900 on the S&P 500 for at least several months. And this is supported by my own technical analysis.

After a discussion of many of the risks peculiar to this economic cycle, the ChangeWave team appraises the big economic forces that "simply have to play out over time."

Continue reading Today's technical outlook: Back out of the banks

Today's technical outlook: Back out of the banks originally appeared on BloggingStocks on Wed, 08 Apr 2009 09:30:00 EST. Please see our terms for use of feeds.

Bank stocks are well off their bottoms. Bank Of America (NYSE: BAC) traded at $2.53 on Feb. 20 of this year. Now it's $7.90 as I check the latest quote. Wells Fargo & Co. (NYSE: WFC) was down to $7.80 on March 5. You'll have to pay $17 as of this writing. JPMorgan Chase (NYSE: JPM) touched $14.96 before bouncing to $28. And Citigroup (NYSE: C) (hopefully) bottomed at $.97 on March 5, then ran to $3 as I write this. Is it finally time to start buying bank stocks?

Continue reading Comfort Zone Investing: Time to buy bank stocks?

Comfort Zone Investing: Time to buy bank stocks? originally appeared on BloggingStocks on Sat, 28 Mar 2009 10:30:00 EST. Please see our terms for use of feeds.

The market rallied yesterday when the White House said it supported the private banking system. According to Reuters, an official said "This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring they are regulated sufficiently by this government."

The statement caused a small rally in big bank stocks, which had been off over 20% much of the day. But, they did not rally back to where the traded at the middle of the week.

Why? Smart investors know that the statement did not mean much. If one of the large banks, probably Citigroup (NYSE: C) or Bank of America (NYSE: BAC) gets into real trouble, the government will still have to step in. If confidence in one of the banks erodes fast enough and other banks refuse to do business with it or customers begin to pull enough money out, the government will have to step in. If Citi's stock price drops below $1 and is still falling, the government will have to step in.

Continue reading What does 'supporting the private banking system' mean?

What does 'supporting the private banking system' mean? originally appeared on BloggingStocks on Sat, 21 Feb 2009 06:18:00 EST. Please see our terms for use of feeds.