Stock number one is:
JPMorgan Chase & Co., (SYMBOL: JPM) and the headline says: JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found -- Bloomberg
We recently reported that JPMorgan Chase is ujp mornder investigation by the SEC’s anti-bribery unit for hiring decisions which may have been made in order to win banking business in China. Now an internal spreadsheet comes to light, linking appointments to specific deals pursued by the bank, reports Bloomberg. However, it is unclear whether any crime has been committed.
JPMorgan is also being investigated for crimes and improprieties in the areas of energy-trading, mortgage-backed securities, balance sheet misstatements, derivatives losses, money-laundering, foreclosures, and credit-card collections.
Earnings growth prospects at JPMorgan Chase are minimal. We would look elsewhere for growth stock opportunities.
Our Ransom Note trendline says: SELL JPMORGAN.
<a href="http://ycharts.com/companies/JPM/chart/#/?series=calc:price,type:company,id:JPM,,&maxPoints=650&zoom=ytd&format=real"><img src="http://media.ycharts.com/charts/50166b28ca13531d3317bd2927ed05d2.png" alt="JPM Chart" /></a><p style="font-size: 10px;"><a href="http://ycharts.com/companies/JPM">JPM</a> data by <a href="http://ycharts.com">YCharts</a></p>
Stock number two is:
Zurich Insurance Group Ltd., (SYMBOL: ZURVY) and the headline says: Zurich chairman resigns over CFO's apparent suicide -- CNBC
Zurich Insurance Chairman Josef Ackermann has resigned in the wake of the apparent weekend suicide of the company’s Chief Financial Officer. Ackermann commented, “I have reasons to believe that the family is of the opinion that I should take my share of responsibility, as unfounded as any allegations might be.” Zurich is a Swiss-based multinational company with $60 billion in annual sales. It’s noteworthy that the CEO of Swisscom, a $12 billion Swiss telecommunications company, also took his own life in July.
Earnings are expected to grow 5 and 14 percent in the next two years. The dividend yield is 7.33%. Citi Research likes Zurich’s balance sheet quality and capital strength, but considers the stock fairly valued.
We would avoid Zurich shares due to the bearish chart, and suspicions that “Something is rotten in the Eurozone.”
Our Ransom Note trendline says..... AVOID ZURICH INSURANCE.