The Zacks Analyst Blog Highlights: Apple, JPMorgan Chase, Goldman Sachs Group, Morgan Stanley and BankUnited

Zacks

 
For Immediate Release
Chicago, IL – August 30, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Apple Inc. (AAPL-Free Report), JPMorgan Chase & Co. (JPM-Free Report), The Goldman Sachs Group, Inc. (GS-Free Report), Morgan Stanley (MS-Free Report) and BankUnited, Inc. (BKU-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations.
Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

Apple to Buy Swedish Software Company

Apple Inc. (AAPL-Free Report) is on an acquisition spree. The iPhone maker recently acquired Swedish software and data performance startup company AlgoTrim. The current deal follows the back-to-back acquisitions of mapping company, Embark (Aug 2013), HopStop.com and Locationary (Jul 2013). These were preceded by the takeover of WiFiSLAM earlier this year.

AlgoTrim’s technology can be used to make files smaller, which helps in improving the performance of a computer. AlgoTrim specializes in data compression, mobile imaging and video and computer graphics.

This type of software primarily helps to improve performance of mobile devices by reducing the amount of memory used. It also reduces the computational effort required for various files when they are stored and accessed.

These acquisitions indicate that the company is acquiring smaller companies to get hold of new technologies. Also, Apple’s strategy of acquiring start-up technology companies is prudent considering the fact that the total acquisition cost is much lower. Moreover, Apple targets companies which can be easily integrated into its current product portfolio.

These acquisitions also enable Apple to deliver tailor-made solutions and technological know-how for specific problems. We believe that this acquisition policy will benefit Apple in the long run.
Probe of JPMorgan’s Hiring Intensifies
 
The legal probe on JPMorgan Chase & Co.’s (JPM
-Free Report) hiring practices now extends beyond Hong Kong to countries across Asia, involving more than 200 interns and full-time staff. The initial investigation revealed internal spreadsheets depicting job offers connected with business deals.  

The probe began this May with JPMorgan hiring the offspring of influential Chinese government officials. Allegedly, the bank lured people with jobs, and in return, the newly recruited employees had to boost business by exploiting their government contacts and records.

The aforementioned hiring practice breaches the US Foreign Corrupt Practices Act and if the charge is proven, JPMorgan’s business in Asia is likely to suffer. The investigation adds to the legal hassles that are already afflicting the bank.

Further, the probe strengthened with the U.S. Justice Department joining the Securities and Exchange Commission in the scrutiny. On the other hand, a Hong Kong-based JPMorgan spokesperson Marie Cheung affirmed the bank’s cooperation with regulatory bodies during the probe in all possible ways.

Asia, comprising emerging economies, is a lucrative domain for profit-seeking organizations. Major banks in the U.S. are eyeing the region in an attempt to strengthen their foothold in the fastest growing markets. So JPMorgan is no exception.

In a rush to fare better than its peers, the company may have adopted unfair means to expand its business. While it is not a crime to appoint officials with influence, creating perfunctory positions for bolstering the business is illegal. Further progress in the probe alone will reveal as to whether JPMorgan recruited personnel judging their qualifications or not.

In the past, there have been instances in which large banking institutions have indulged in similar malpractices. The Goldman Sachs Group, Inc. (GS
-Free Report) had once hired the former Chinese president Jiang Zemin for its private investment arm.

Moreover, in 2012, a former Morgan Stanley (MS
-Free Report) adviser was imprisoned on accusations of bribing a Chinese official to procure profitable real estate investments for the bank.

JPMorgan currently holds a Zacks Rank #3 (Hold). A better performing bank is BankUnited, Inc. (BKU
-Free Report), which has a Zacks Rank #1 (Strong Buy).
 
Today, Zacks is promoting its ''Buy'' stock recommendations.
Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
 
Get the full Report on AAPL - FREE
Get the full Report on JPM - FREE
Get the full Report on GS - FREE
Get the full Report on MS - FREE
Get the full Report on BKU - FREE
 
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
 
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
 
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on AAPL

Read the analyst report on JPM

Read the analyst report on GS

Read the analyst report on MS

Read the analyst report on BKU

Zacks Investment Research



More From Zacks.com
View Comments (0)