Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, March 14, 2008

Article Excerpt

J.P. MORGAN CHASE CO. $36.54, New York symbol JPM, fell 4% on Friday after it agreed to participate in an emergency loan package for troubled investment broker Bear Stearns Cos. Inc. (New York symbol BSC). J.P. Morgan will borrow funds from the Federal Reserve, and loan the money to Bear Stearns for 28 days. The Federal Reserve will guarantee the loan, so the risk to J.P. Morgan is minimal. Meanwhile, J.P. Morgan will help Bear Stearns find permanent financing. It’s possible J.P. Morgan may try to buy Bear Stearns. However, anti-trust regulators would probably block a merger. J.P. Morgan is still a buy. BANK OF AMERICA CORP. $35.69, New York symbol BAC, agreed to buy troubled mortgage lender Countrywide Financial Corp. (New York symbol CFC) in January. However, the FBI is now looking into allegations that Countrywide loaned money to clients it knew could not repay. If true, then Countrywide’s loan portfolio is riskier than originally reported. That would probably scuttle the…