Dougie: Why I'm Buying JPM

Doug Kass took to his page at TheStreet to explain why he’s taking a long position in $JPM under $40.  He is disappointed in management but believes the risk-reward is worthwhile here…

I took a small long position in JPMorgan Chase (JPM_) at $38.20 after the close of trading yesterday and after JPMorgan made its surprising announcement.

I weighed the impact of the hit to earnings and to perception and concluded that it is fairly unusual to be able to buy JPMorgan Chase’s shares at only $4 over book value ($34 a share), especially in the face of an active $15 billion buyback.

I am not foolish enough to believe that I will be immediately rewarded in this trade, however, and I am putting the shares away as an investment.

Click over to find out why…

Source:

The Smartest Man in the Room Looks Dumb (TheStreet)