SunTrust Banks, Inc. (STI)

Gtrinvestor (99.98) Submitted: 5/15/07 8:23 AM : Start Price: $81.58 STI Score: -20.04

Decently run company that is feeling the heat to really notch up performance due to: stagnant earnings and the real threat of a buy-out in the next 18 months (see WSJ and other related articles re: this potential). As a result STI has sold 9% of its Coca-Cola stock to initiate a share buyback of approx $1 B (in addition to its already sizable 3.5% dividend rate). Moreover, the bank is cutting costs and investing in new growth areas, as they don't want to be bought out (at least according to STI public statements). As a result, I see a highly motivated management that either will turn the bank around and drive great success, or it will be bought out at a premium. Either way, this stock should benefit.

Report this Post Replies: 0 | Reply | Permalink