Tuesday, October 20, 2009
Matt Koppenheffer :: Townhall.com Columnist
Great Call on JPMorgan Chase! What's Next?
by Matt Koppenheffer
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Could JPMorgan Chase (NYSE: JPM) be the next Goldman Sachs (NYSE: GS)?

If the bank's most recent earnings reportis any sign, the answer could very well be "yes." While the company's traditional banking operations -- that is, lending to businesses and consumers -- continue to suck wind, its investment banking and internal trading segments are printing money.

The real opportunity for investors is if the bank can get its banking operations -- along with the assumed operations of Washington Mutual -- back on track andkeep up the eye-popping performance from its trading and investment banking operations. Of course, therein lies the risk. If banking operations continue to blunder along and the trading cowboys can't keep picking up the slack, severe disappointment would follow.

For some perspective on how investors see JPMorgan Chase we can turn to the collective opinion of the Motley Fool CAPS community. The stock has 2,874 outperform calls versus 605 underperforms, giving it a two-star rating (out of a possible five). Apparently, CAPS members see better opportunities.

Despite JPMorgan Chase's low rating, quite a few CAPS members have scored big by betting on the stock. Kuzenheimeris the current JPMorgan Chase score leader, racking up more than 170 points with two very timely calls on the stock.

Kuzenheimer is one of CAPS' All-Stars -- players with a rating of 80 or greater -- and has managed an impressive stock-picking accuracy of 68% while racking up nearly 800 points. JPMorgan Chase isn't this player's only great call. Here's a look at a few of the other prescient picks:

Company

Date Picked

Date Ended

Call

Points

CAPS Rating
(out of 5)

Yamana Gold (NYSE: AUY)

8/13/08

Still Open

Outperform

34

****

Joy Global

8/17/09

Still Open

Outperform

33

*****

Kimberly-Clark (NYSE: KMB)

7/30/08

10/31/08

Outperform

31

****

Data from CAPS.

So what is this investor looking at more recently?

Company

Date Picked

Call

CAPS Rating
(out of 5)

Sun Hydraulics (Nasdaq: SNHY) Continued...

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About The Author

Matt Koppenheffer is a contributor to the Motley Fool.

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