Updated as of July 20, 2017:
Here is a list of all companies currently covered by ModernGraham, as of the date listed above. Â Clicking on the company name will bring you to the latest valuation of the company published by ModernGraham.
Search Results for: JPM
Bear Stearns RIP 1923-2008
This evening (3/16/08) it is being reported that JPMorgan will be purchasing the struggling investment bank for $2 a share. Yes, that is correct I did not forget a digit, the purchase price was $2 when this stock was trading in excess of $150 a share this time last year. Absolutely shocking to see by far one of the, if no the, largest fallout from the current credit crisis we are experiencing. I will have more thoughts on this tomorrow as the details of the deal are unveiled, but needless to say JPMorgan is buying this company at a fire sale price considering the price represents only 1/4 the value of the building they own and operate out of.Â
Glance at the Dow
I decided to put together a list of the Dow Jones Industrial Average and see how our valuation formula values each component. I’ve listed the result below. I also ran the test for each component to determine if it would pass our list of guidelines for the defensive and enterprising investors and calculated how the current price compares to the valuation. Please note that by no means do we ever make any recommendations to buy or to sell and take a moment to read our disclaimer while you’re at it.
| Dow Component | Symbol | Defensive | Enterprising | Value | Price |
| 3M | MMM | No | Yes | $137 | $76.51 |
| Alcoa | AA | Yes | Yes | $85 | $36.60 |
| American Express | AXP | No | No | $60 | $41.53 |
| American International Group | AIG | Yes | Yes | $15 | $42.88 |
| AT&T | T | No | Yes | $68 | $35.01 |
| Bank of America | BAC | Yes | Yes | $68 | $36.74 |
| Boeing | BA | No | Yes | $135 | $76.60 |
| Caterpillar | CAT | No | Yes | $172 | $69.84 |
| Chevron Corp | CVX | Yes | Yes | $284 | $85.26 |
| Citigroup | C | Yes | Yes | n/a | $20.91 |
| Coca-Cola | KO | No | Yes | $54 | $58.85 |
| DuPont | DD | No | Yes | $104 | $45 |
| ExxonMobil | XOM | No | Yes | $233 | $82.49 |
| General Electric | GE | No | Yes | $46 | $32.23 |
| General Motors | GM | No | No | n/a | $21.96 |
| Hewlett-Packard | HPQ | No | Yes | $71 | $47.31 |
| Home Depot | HD | Yes | Yes | $61 | $25.88 |
| Intel | INTC | No | Yes | $34 | $20.07 |
| IBM | IBM | No | Yes | $154 | $113.94 |
| Johnson & Johnson | JNJ | No | Yes | $66 | $61.51 |
| JPMorgan Chase | JPM | Yes | Yes | $130 | $37.56 |
| McDonald’s | MCD | No | Yes | $46 | $52.27 |
| Merck | MRK | No | No | n/a | $41.75 |
| Microsoft | MSFT | No | Yes | $35 | $27.87 |
| Pfizer | PFE | Yes | Yes | $47 | $21.35 |
| Proctor & Gamble | PG | No | Yes | $98 | $65.80 |
| United Technologies Corp | UTX | No | Yes | $109 | $67.49 |
| Verizon Communications | VZ | No | Yes | $63 | $35.08 |
| Wal-mart | WMT | No | Yes | $65 | $49.90 |
| Walt Disney | DIS | Yes | Yes | $63 | $30.76 |
You’ll notice that a great deal of these are significantly undervalued currently according to our formula. This is evidence that quantitative studies are only part of the requirements of prudent investing. The intelligent investor must also take into account management styles and determine the likelihood of the market eventually meeting the estimated value.
The Market This Week
Market Snapshot:
Dow                      12,099.30                      -59.91
Nasdaq                   2,340.02                   -6.88
S&P 500Â Â Â Â Â Â Â Â Â Â 1,325.19Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â -8.06
Following a rough week, the market started of Monday with a small advance due to positive forecasts by IBM that estimated earnings 24 percent above expectations. Other experts reasoned that the market was oversold due to last weeks aggressive selling.
 But it was Tuesday that seemed to kill all hopes or optimism from Monday when Citigroup Inc. posted weak results, losing $9.83 billion in the fourth quarter as well as announcing $12.5 billion capital injection. To add to investor pessimism, Merrill Lynch & Co. reported that three foreign firms are investing $6.6 billion. But it was Intel Corp. that took the hardest hit after hours when the company reported lower than expected earnings. Investors are taking this report as a indicator for the rest of the tech sector which is one of the leaders of Wall Street. What is worse is that all news seems to point toward the growing anvil, recession.
Wednesday showed mixed results. Concerns of Intel Corp.’s earnings followed to Wednesday, fearing for the tech sector. However, The Fed released a report indicating that 2007 still saw some economic growth. Especially encouraging was JPMorgan Chase & Co. and Wells Fargo & Co. that reported better earnings that expected, showing that the current financial crisis is not completely damaging all the players of the sector.
The end of the week ended with a continuing lower sentiment. Even after Bush’s announcement of his economic plan, including $145 billion worth of tax relief, the market was well to the downside. But this only added to investors worries as signals come that the economy is truly on its way to recession. All good news earlier in the week was soon forgotten.Â