Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Why it’s Time to Buy J.P. Morgan

Details

  • Description

    GameChangers Stocks Editor Hilary Kramer on the outlook for J.P. Morgan and Morgan Stanley.

  • Duration 3:06
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

-- stemming JPMorgan are ending and we bruised and battered but does the battering create a buying opportunity for investors let's ask Hilary Kramer.

Editor of game changer stocks dot com welcome back to the show Hillary.

See you right to JPMorgan don't ask don't underestimate JPMorgan selling it is a bad trade -- that.

Well JPMorgan is one of the best companies in terms of management.

In terms of earnings potential and there's at 3.5 percent dividend yield so even with this big black guy from this big loss that was called a -- management trade.

But really wasn't.

JPMorgan is the company that you want to own special finished four billion dollars this quarter are you at all concerned breaking news just this hour it's confirmed June 7 CEO Jamie Dimon to speak -- -- testify rather before the senate banking committee that's got cast somewhat of a shadow weigh on shares the publicity alone.

Has to raise a lot of questions.

-- many on many levels yes of course JPMorgan has for educational issues now to deal -- in this we'll just.

-- Jamie Dimon again in front the -- How ever.

The Morgan -- issue with reputation.

And with FaceBook and so many investors in FaceBook being impacted not necessarily just the investors of Morgan Stanley it's a much greater and more serious issue.

And the litigation.

Overhang is much greater in terms of impact that's an interesting comparison the way you put it so then JPMorgan is the by.

Morgan Stanley is the south and your outlook now long term that this is -- I'm the technician -- how little investigating and working because it is this an entry point and how did you -- go all land or be a little cautious I'll learn it's a great question.

Right here even for an investor if they wanting to invest right now yes this is fine in the low thirties.

But you might want to be careful and realize that.

It could get worse because the trading loss right now is estimated to be two to three billion dollars it could be a five billion dollar loss we know that ten point three billion dollars.

What's with the trade in total.

The total of the trade.

How ever.

You know.

You want to be careful always know Morgan Stanley what's interesting there is technically it could balance to -- -- up from thirteen dollars to eighteen or nineteen dollar but not what you -- -- own over the long term so an investor should get in there.

By JPMorgan enjoy that dividend and that's a long term hold.

Core -- -- portfolio we just had our markets -- warn us about rising interest rates in Europe and keeping an eye on these overnight rates because if -- We might start seeing some tightness in credit markets because of the European crisis JPMorgan Morgan Stanley -- you have any exposure to that because it's not necessarily the smaller banks in.

Europe right it's right larger banks in the contagion effect glory that's actually true that's why I would take that commercial banking unit -- an overlay investment banking with it any day the week for JPMorgan where is the revenue is that much more lumpy.

And there's -- much more exposure that Morgan Stanley has to deal with.

Because so much of their business is fixed income and next fully share.

Two issues such as geographically like Europe because Europe hasn't had its day of Armageddon yet now unfortunately.

Two and a half years -- -- still hasn't come to a head but here are Kelly it's great to see you have a wonderful weekend.

Load More