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Groundhog Day – PPC, HSH and TSN

Last week, we suggested that it was likely that PPC would remain engaged in its pursuit of HSH subsequent to TSN offering a $50 per share counter-bid for the company. Sure enough, the Wall Street Journal is reporting that PPC

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Apple vs. Banks in Mobile Payments: Update

The first media reports[1] appeared today of Apple’s discussions with retailers around a mobile payments system where payments are integrated into a premium shopping experience relying on wireless communication between iPhones and iBeacons (as piloted already in a few Apple

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Quick Thoughts – HSH, TSN and PPC (Second Verse, Same as the First?)

This morning, TSN announced a proposal to acquire HSH for $50 per share in an all cash deal, effectively trumping PPC’s $45 per share offer that likely hadn’t even had time to cool off it was so fresh out of

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WFC: The Bull Case by the Numbers

With WFC “at or near” its target capital model (bar some preferred issuance to meet liquidity requirements) and easing of two of the three margin headwinds (from the liquidity build and negative re-pricing of assets), the bank is well positioned

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Quick Thoughts – HSH, PF and PPC

This morning, PPC sought to derail HSH’s proposed acquisition of PF by announcing an unsolicited bid for HSH of $45 per share (all cash). Putting aside the numbers for a moment, this deal makes much more sense to us if

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Apple vs. Banks in Mobile Payments

Based on its patent filings, we expect Apple to extend its Passbook app (currently reserved for gift cards) so that it is compliant with EMV contactless and tokenization standards. This means customers, via their banks, can enable iPhones for mobile

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Quick Thoughts – WFC Investor Day: Shift to Mobile Creates Advantage for Large Banks

Beyond financial housekeeping (increasing the target payout ratio to 55-70% from 50-65%), an expression of confidence in the economy, and an intriguing glimpse into how the configuration of a branch network (siting, density, and layout) impacts the relative share of

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Quick Thoughts – Retail

Retail earnings this morning are a bit dicey, with notable weakness from a number of different companies – SPLS, HD, TJX, URBN and DKS. We see these results as consistent with our commentary last week where we laid out (again?

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JPM: Earnings Power and Buyback Capacity Under-Estimated

With declining Treasury rates over the last few months and a first-quarter earnings miss, consensus 2015 EPS for JPM has fallen to just above $6.00 from $6.35 in March. This is overdone, and we expect the bank to beat comfortably

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Quick Thoughts – AXP: Releasing the Distribution Bottleneck will Lift ROE

Our thesis is that in 2016 Amex will raise its ROE target (currently 25% or more) as the Global Network and Merchant Services or GNMS business grows relative to the proprietary issuing business. Presently GNMS, which includes earnings from network

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