JPMorgan's Rescue Efforts, Falling Home Prices, and Morgan Stanley's Resilience

Investor Opportunities, Dividends & Buybacks, and Tech Titans Defying Market Trends

Author

Justin Oh
March 24, 2023

🚀 In this week's newsletter, we delve into the latest market insights 📈, covering JPMorgan's efforts to stabilize First Republic Bank 🏦, the first drop in home prices 🏠 in 11 years, and the Fed's rate hike amidst banking stress 💸. We also highlight the resilience of Morgan Stanley 💪, Grupo Aeroportuario del Pacífico's dividend and buyback proposal 💰, and how mega-cap tech stocks 🌐 are holding up the market. Don't miss our exclusive Cents Invest Club offerings and updates from the Twitterverse 🐦 to keep you informed and ahead in the world of finance 🌎.

📣 As a reminder, if you’re an accredited or serious investor looking for a community of serious intelligent stock investors head over to centsinvest.com and get 30 days FREE! 📣

 What You Need to Know

Headlines

WSJ News Exclusive | JPMorgan CEO Jamie Dimon Leading Efforts to Craft New First Republic Bank Rescue Plan

JPMorgan Chase CEO Jamie Dimon is leading discussions with the chief executives of other big banks about fresh efforts to stabilize troubled First Republic Bank.

https://www.wsj.com/articles/jamie-dimon-leading-efforts-to-craft-new-first-republic-rescue-plan-a39b9bb

Home Prices Fell in February for First Time in 11 Years

The median existing-home price dropped 0.2% in February from a year earlier to $363,000.

https://www.wsj.com/articles/home-prices-fell-in-february-for-first-time-in-11-years-73df0107?mod=hp_lead_pos1

Fed Raises Rates but Nods to Greater Uncertainty After Banking Stress

Officials voted unanimously to increase their benchmark short-term rate by a quarter percentage point.

https://www.wsj.com/articles/fed-raises-rates-but-nods-to-greater-uncertainty-after-banking-stress-6ae9316f

Block shares plunge 15% after short seller Hindenburg says Jack Dorsey’s company facilitates fraud

Block shares plunged after noted short seller Hindenburg Research said the company's flagship Cash App facilitates crime and lacks strong compliance controls.

https://www.cnbc.com/2023/03/23/block-shares-plunge-after-hindenburg-says-jack-dorseys.html

Deutsche Bank Stock Tumbles on Contagion Fears

The selloff thrusts one of Europe’s most important lenders into the center of concerns about the health of global financial system.

https://www.wsj.com/articles/deutsche-bank-stock-tumbles-on-contagion-fears-1250eb04?mod=hp_lead_pos1

On Twitter

 Trends In Focus

With over 50% of their revenue generated from wealth management, the company has demonstrated resilience and strength in a volatile market. Here's a brief overview of why Morgan Stanley is an attractive investment:

  1. Impressive ROTCE Growth

  2. Diversified Revenue Streams

  3. Low Net Interest Income Exposure

  4. Strong Wealth and Investment Management

  5. Impressive Deposit Growth

  6. Robust CET1 Ratio

  7. Unwarranted Share Price Decline

  8. Capital Return and Deployment

In conclusion, Morgan Stanley presents a unique investment opportunity with its diversified revenue streams, solid wealth management growth, and strong capital position.

To read the full in depth write up click here.

Grupo Aeroportuario del Pacífico (PAC) is set to propose a dividend declaration and share repurchase program during its April 13, 2023, shareholder meeting. The proposed dividend, sourced from the retained earnings account, amounts to Ps. 11,685,291,653.00, with each class B share outstanding receiving Ps. 14.84 per share. The estimated dividend for American Depositary Share (ADS) holders is approximately USD$7.99 per ADS, based on the current exchange rate, representing a 4.4% yield based on the current price.

Additionally, PAC plans to cancel the outstanding balance under the previous Share Repurchase Program and allocate Ps. 2,500,000,000.00 for repurchasing shares within the next 12 months. The buyback authorization represents roughly 1.4% of the company's market capitalization. Combining both the dividend and buyback program, the estimated shareholder yield for the upcoming year is approximately 5.8%.

As a reminder, Pacifico airports bases their dividend off the prior year earnings, and is variable.

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