In light of the positive JPMorgan Chase
Despite the legal fall-out relating to the robo-signing scandals, according to The Steet, JP Morgan's earnings prevail notwithstanding increased costs related to the scandal. However, the biggest cost for JP Morgan is not foreclosure-related, but rather employee compensation with hiring and bonuses.
The earnings release may be a sign of strength for the company as it surpassed expectations despite significant costs throughout the past quarter. Also, JP Morgan said a significant cost involved new hiring: possibly a sign of expansion. Currently trading at $44.53, with a P/E of 12.43, JP Morgan could be slightly undervalued. Trading above its 200-day value may be seen as a sign of overly robust sentiment, but the financial sector was hit very hard during the financial crisis and may still be on the rebound.
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