JP Morgan Q4 Earnings

Posted on | by Todd | Leave a Comment on JP Morgan Q4 Earnings

Shares of JP Morgan reached an all-time high of $112.80 as the firm announced adjusted Q4 EPS of $1.76 versus expectations of $1.69.

Revenue numbers were announced at $25.45 billion against the street’s forecast of $25.15 billion.

The small gain in revenue was tempered by a 34% decline in its fixed-interest revenue, which was a result of lower market volatility and tighter credit spreads.

The company returned $6.7 billion back to shareholders during Q4 with $4.7 in net share buy-backs.

With the major indexes at elevated levels, Q4 earnings could add some volatility to global equity markets.

Other key banking names reporting this week include CitiBank on Tuesday followed by Goldman Sachs and  BoA on Wednesday.

JP Morgan Chase

 

ALGO Buy Signal For Stockland Corporation

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Our ALGO engine triggered a buy signal for Stockland Corporation at $4.28.

Like several of the ASX interest-rate sensitive names, the SGP share price has dropped more 10% over the last month.

With over $16 billion in real estate assets across the country, SGP is Australia’s largest residential property developer.

We believe that the company’s diversified community development model will insulate the firm from a downturn in the higher-end property market and support a higher share price.

The technical “higher low” pattern is based on the July lows near $4.00. With a year-on-year dividend expected in the 26 cent range, this puts the stock yield at around 5.5% at current prices.

Stockland

 

 

ALGO Update: New Buy Signal In TWE

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Treasury Wine Estates has been included in our Top 50 Model Portfolio since September 2014, when the shares were priced at $4.90.

The ALGO engine has triggered several buy signals since then and we have bought and sold this stock successfully for customer accounts over the last 3 years.

We noticed that ALGO buy signals have occurred on a “higher low” pattern and after an approximate 10% pull back in the share price.

Our ALGO engine triggered a buy signal at the ASX close yesterday at $14.80.

Prior to yesterday’s signal, the most recent buy signal was on July 12th at $12.30. This signal was on a “lower high” pattern and about 10% below the June 16th high of $13.75

Similarly, yesterday’s buy signal at $14.80 pencils out to a 10% correction from the December 20th high at $16.55.

Fundamentally, we believe that TWE has a very solid growth and distribution model and new highs above $16.55 will be reached over the medium term.

Treasury Wine Estates

 

The Crude Oil Rally Is Looking Stretched

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Since December 1st, the price of WTI Crude Oil has rallied over 14%.

Just in the last 5 days the WTI price has risen 5% from $60.25 to a 3.5 year high today of $63.50.

Recent reductions in crude inventories combined with Geo-political tensions in the Middle-East have support prices.

However, there have been many analyst sceptical that this will be a protracted rally in Crude prices.

This scepticism can be seen in the price action of some of the local oil-based names.

Despite the 5% rise in WTI over the last week, shares of OSH have dropped by 2.5% to $7.90, and the share price of WPL and STO have been consolidating off their recent highs and look to be pointing lower.

We urge caution on the sustainability of the recent run up in Crude prices and would suggest exiting long exposure to WPL, STO and OSH

Woodside

Santos

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