- The stock is trading at a low price to book multiple, despite an ongoing share buyback
- JPM and the big banks already trade at low PE multiples (JPM is at less than a 7x forward P/E, more than a 40% discount to the S&P 500)
- The cost of the $2 bln trade is fairly low to JPM, in the grand scheme of things.
Read what he has to say. It’s not a buy recommendation.
The value is that it provides insight into the psychology involved, and why big downside from here based on regulatory fears could be limited.