Ticker: JPM, Buy below $120.

JP Morgan Chase is an American multinational investment bank and financial services holding company.

Why I Would Buy

1. Return on Equity – JPM has averaged a decent 9 to 14% RoE for all of past decade.   
2. Cheap – Forward P/E less than 13x.
3. Dividend – generous 3.5%+ yield, <35% payout ratio.
4. Credit Ratings – Strong long term credit ratingsAA-/A-

What Could Go Wrong

1. Complexity –Complex opaque trading operations, non-trivial  probability of a blowup like other Wall Street giants in the 2009.
2. Book Value – Trading a relatively high book value multiple (1.4x).

Disclosure: I am long JPM, please read additional disclosures here before taking any action based on this post.