Information that I have, leads me to be believe this article will only be true until the new CEO has had a chance to fully investigate FUSA operations. There are more things wrong then right. And operations has been bad for so long that the further you investigate the more mind-blowing it becomes. If I owned the company, I'd sell. And I think most people would as well. Buyers will however gain tons of technology immediately. Which makes it an alright buy.
You have two great banks that were merged together. I would get rid of First USA because that will placate the analysts immediately and give a floor to this stock. I am out now but would hate for those that hang in to watch this stock go back anywhere near $23/share. If you were going to get this ready for sale I would suggest that First USA goes anyway.
Dimon saying he won't sell First USA is going to dog this stock for awhile. I got in on news of Dimon in; I'm out now. He could clean this mess up so quick if ONE would just do what other banks (FTU & MEL) have done and that is to get rid of the credit card business. There is better income in generating fees from money management and other businesses. Credit card businesses are very cyclical and at this time it is too competitive with these 2.9% intro rates. How long does it take for a credit card company to make up for that intro rate? I have a friend who was able to move from card to card for 4 years starting a business on credit cards where the highest rate he ever paid on $50,000 was 6.9%; AMAZING. Goodbye ONE.
i agree with ferdiefor. i think there's still way too much uncertainty about the future performance of this company. a 30% rise based on confidence in one person and a company with so many pressing problems ... seems a bit much. i still think this company has a great franshise and will eventually succeed but i think the stock will continue to be under pressure until the market begins to see evidence of a turnaround. i may get back in if it falls under $30 again.