Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, October 14, 2009
JPMorgan Chase Double Messages
JP Morgan Chase (JPM) announced positive Q3 results and excited the market. Net income of some $3.6 Billion vs a mere $527 million for same quarter last year. But here is the sleeping problem. $2 billion for anticipated credit losses. Jamie Dimon, Chairman and Chief Executive Officer, offered the opinion that delinquencies and loan losses will remain elevated "for the foreseeable future" in its consumer and credit-card operations. He also has noticed that business clients are reticent about using available credit lines. This all means tough sailing in the future. The bad clients will cost you and the good clients will not use you.