Mike Mayo, banking analyst at Crédit Agricole Securities - formerly at Goldman - thinks JPMorgan Chase is poised to make more acquisitions, quite possibly overseas.  In 2008, the bank acquired Bear Stearns and Washington Mutual;  Mr. Mayo wrote in a research report that JPMorgan’s stock benefited from both deals outperformed its peers in the aftermath of those transactions.  Further deals could bolster JPMorgan’s stock price, a 2010 underperformer.  

Mayo thinks JPMorgan seeks to grow earnings and market share in both the United States and increasingly overseas. 

• “While we do not believe that the company needs acquisitions for earnings growth the next couple years, we also sense that acquisitions outside the U.S. could be used to position for the longer term. 
• Will JPMorgan Chase find the equivalent of a WaMu in Europe, Asia, or Latin America?
• Alternatively, will there be another troubled U.S. bank where JPMorgan Chase can move in and get an attractive price?
• To us, the answers are important to act as a potential stock catalyst (if the company keeps to its discipline), but not as important as in the past given market share gains since prior to the crisis that position the company for better growth.”

Mr. Mayo once again alluded to the fact that JPMorgan came out of the Global Financial Crisis in much better shape than than most of its global and domestic peers, so the bank's in a good position to make further acquisitions.  The acquisition theory also is supported by JPMorgan's build up in capital - to “maintain a fortress balance sheet."   [NYT Dealbook, 1/10]