Some of these moves are just insane. Microsoft (MSFT) trades as it if is about to break up. AT&T's (T) roaring as if it is about to split the company up? JPMorgan's (JPM) above $60 even though when rates were at these levels before this it was way lower. These moves make no sense to me.
Microsoft's a complex company, one that emphasizes Windows and Windows branding, even as if this is a company that has won the living room with Xbox. If Apple owned Xbox, I am confident that stock would be more than $600. Some are saying that Microsoft is about to bring out value by splitting up. I say that's simply not on the table. Others are saying that it is because Microsoft is going to make software for iPads. Sure, but this move's bigger than that.
I think the only thing that makes sense to explain this one is that there's a repudiation of the past going on and the big mutual and hedge funds love it. That plus the re-rating of the tech complex I wrote about earlier.
There isn't much I can say AT&T's doing to make it stock more attractive other than a big dividend boost. Perhaps there's a giant additive acquisition? I don't see it happening either. Maybe the darned thing is just so behind the market that a couple of big firms have just decided to make a stand.
JPMorgan is a good-house-good-neighborhood story, but the ultra-enthusiasm here is difficult to fathom.