$1 Billion Out The Door
$1 billion of cash out the door. No this is not related to tonights trading loss announcement.
The $1 billion was the amount of owners cash JPM provided to sellers of stock and warrants from 31 March 2012 to 30 April 2012. That is roughly $0.26 per share.
Per 10-Q released May 10, 2012:
$ 216 million spent repurchasing stock, as of March 31, 2012
$1,300 million spent repurchasing stock and warrants, as of April 30, 2012
$39.48 - The average cost for treasury stock purchased during the quarter.
$33.10 - The average cost for treasury stock purchased in January 2012.
$45.29 - The average cost for treasury stock purchased in March 2012.
282.9 million shares of treasury stock were held at 31 March. That is down over 49 million shares since 31 December 2011.
The surprise in the more recent 10-Q was seeing $2,170 million worth of treasury shares reissued during the quarter, or roughly 55 million shares.
This evening JPM is trading lower at $38.00. That means a $450 million loss on the 282.9 million treasury shares. Ouch!
On weakness JPM may look interesting. Keep an eye on the JPM preferred issues they as may offer a better risk- reward than the common.