Is JPMorgan Chase Well-Positioned for the Future?

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With shares of JPMorgan Chase & Co. (NYSE:JPM) trading around $57, is JPM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world.

The global pool of prized rainmakers shrank further on Tuesday after one of JPMorgan Chase’s longest-serving deal bankers said he would retire. Klaus Diederichs, a 34-year veteran of JPMorgan and a brand-name adviser during several merger booms, is stepping down as Chair of European investment banking in April. The German-born banker joined JPMorgan straight out of university in 1980 and has held several senior leadership roles in his time with the bank, most recently the head of investment banking for Europe, Middle East and Africa.

A traditional relationship banker, Mr Diederichs helped establish JPMorgan’s European deals and advisory business in the early 1990s, hiring bankers just as rivals were cutting back and competing with leading London corporate finance houses SG Warburg and Morgan Grenfell. To compete with what were then better-known European advisers, he staffed the JPMorgan team with pan-European specialists. The bank is highly regarded by its rivals for the way it has translated existing corporate relationships into financial advisory mandates. He also persuaded some of the continent’s more-conservative companies to hire JPMorgan for external merger advice.

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