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SUPERMANSTOCKS (56.33)

The Oversold and Undervalued! Banks and Retail@!!

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5

October 17, 2011 – Comments (13) | RELATED TICKERS: PSUN , SNV

Now as I know everyone is looking for the cheap stoc, and or the money maker. Well, I have a couple for you. If you take a look around I have noticed something alot of investors have overlooked. Pacific Sunwear of California, Inc (PSUN) Lets take a look at this retailer for a second, sure it has debt, and what companie doesn't? Pacific Sunwear has a Price to Book value of 2.34 and a Market cap of $82.78M. But here is another fact Pac Sun has a 52 week high of 6.84 a share. Of course with an EPS of -1.41 a share I can see where some investors would say this is junk. But the fact remains that this company has a ton of insider investing as of most recent and is 65% institution owned. Also, with christmas coming up, your teen or the teen crowd will be shopping there in droans! We all know that little teenage Mary must have that awesome tshirt or swimsuit, just to name a couple things. 

Now moving on to my look into an oversold bank and or stock. Synovus Financial Corp (SNV) with a price to book ratio of 2.28 and 73% institution owned. The stock currently trades at $1.31 and has moved in the range of $ 0.94 - $2.99 during the last 52 weeks. They are still paying the 3.25% yield, which is not a lot, but it sure helps any IRA in the long run. I know you're saying, what a dud, not dude what a awesome stock! With an average trading volume of 7.87 shares per trading day, I would say that someone is taking a long hard look besides myself. One more thing  with 30 bank branches in the United States, this regional bank is expected to rebound and make a nice profit in 2012 due to their move in the form of higher loan growth. Also keep in mind their Preferred SNVpT pays a nice dividend quarterly, about 50 cents a share. With a 52 week price spread of 10.22 - 27.25 and a current price per share of 12.94. It will make a nice investment at these levels for any IRA.

In conclusion if you dig deep enough you will find a few hidden gems.

 

13 Comments – Post Your Own

#1) On October 17, 2011 at 11:03 PM, RallyCry (< 20) wrote:

I'm not sure about these stocks but I love the enthusiasm. If you want a good pick for an IRA, check out Visa. (V)

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#2) On October 18, 2011 at 9:36 AM, SUPERMANSTOCKS (56.33) wrote:

why chase after one of the big boys? The entire point is to find beat down oversold companies. Visa is not one of these hiddem gems!

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#3) On October 19, 2011 at 12:53 AM, Mega (99.95) wrote:

Pacific Sunwear has a Price to Book value of 2.34

Wrong, the price to book is .5 

PSUN has reported losses for the last 12 quarters, which explains why they are trading well below book value.   

Synovus Financial Corp (SNV) with a price to book ratio of 2.28

Wrong, the price to book is .51

SNV has reported losses for the last 12 quarters, which explains why they are trading well below book value.  

average trading volume of 7.87 shares per trading day 

Wrong, average trading volume is 12.22 million shares.

 

Based on your limited understanding of these companies (and perhaps investing in general), I do not think you should be trading stocks.

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#4) On October 19, 2011 at 11:33 AM, SUPERMANSTOCKS (56.33) wrote:

so you caught my typo! On the day I checked my numbers it was 7.87 million per day according to googl, and that was the average. Also, my price to book value was taken from my broker. So, what you are saying is my broker is wrong? Hey you might be right, but it sounds as if you want to short this to ZERO.

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#5) On October 19, 2011 at 12:24 PM, Mega (99.95) wrote:

Yes, obviously your broker's data is wrong.  And if you did any due diligence you would have realized this.

Pac Sun is a horrible company and probably on its way to $0, Synovus is a pretty lousy company but may be worth more than $1.35 per share.  I am not short either.

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#6) On October 21, 2011 at 12:15 AM, SUPERMANSTOCKS (56.33) wrote:

I will take my chances. I have seen what Pac Sun has done year over year. Its always crap this time of year as far as share price. It is oversold.

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#7) On October 25, 2011 at 11:28 AM, SUPERMANSTOCKS (56.33) wrote:

ALERT!! SNVpT PRFD shares paying out a 15.51% dividend !! 

Dividend Announcement10/12/2011Ex-Date11/9/2011Payable0.5156 - QRTRPayable Date11/15/2011

Not bad for a 13.00 stock!

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#8) On October 27, 2011 at 1:11 PM, SUPERMANSTOCKS (56.33) wrote:

can I say I told all of you so! SNV!

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#9) On October 27, 2011 at 1:57 PM, truthisntstupid (94.07) wrote:

If you look up the PE for PSUN it says N/A.  FWD PE is also N/A.

Interest coverage is N/A.  PSUN has hardly any debt with a debt/equity ratio of only 0.17 so having an interest coverage of N/A is bad.

In 2010 PSUN generated 6 cents of free cash flow for every dollar of revenue.

In 2011 PSUN had a negative free cash flow of 6 cents for every dollar of revenue, and in the trailing twelve months PSUN had a negative free cash flow of 4 cents for each dollar of revenue.

From 2002 up to 2008 PSUN's revenue grew from $685M to $1,454M.

2009 revenue was $1,455m.  After that the trouble started.

2010 revenue was $1,027M.

2011 revenue was $930M.

TTM revenue was $922M.

In 2006 PSUN had a gross margin of 36.4% and a net margin of 9.07%.

In the trailing 12 months PSUN had a gross margin of 21.4% and a net margin of  -10.08%.

Earnings/share are on a steady downslope, as is book value.

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#10) On November 09, 2011 at 9:34 AM, leaderoftheback (83.84) wrote:

Word of caution, SUPERMAN...that word is

KMART.

Preferreds have real risks.   It's not paying 15.5% for nothing.

 

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#11) On November 09, 2011 at 9:49 AM, MaxTheTerrible (88.91) wrote:

"shopping there in droans"??

Although English is my second language, I think you meant "in droves". I am always looking for a cheap stock (not stoc), but it's just hard to take an advice from a piece so poorly written...

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#12) On December 03, 2011 at 7:27 PM, SUPERMANSTOCKS (56.33) wrote:

I made money on them! Oh well my gain is your loss

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#13) On March 13, 2012 at 8:42 PM, SUPERMANSTOCKS (56.33) wrote:

I have money on PSUN and SNV! Guess people dont know value when they seem them eh? I love tooting my own horn sometimes! SNV was bought at about 1.00 and the same for PSUN made 100% on both. Like the Motley Fool says always look at the things no one will touch and always dig deeper and you will find the hiddem gems. Guess some people havent figure out how to do that yet

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