Sterling Financial Corp (STSA)

anchak (30.85) Submitted: 7/28/08 3:28 PM : Start Price: $6.87 STSA Score: -7.39

What a sterling job Sterling ( Full pun intended!)





You amaze me!





Non Performing Assets increased by 80 MM to 303 MM.





MOST IMPORTANT: CLASSIFIED ASSETS


Nice trick - this moves everything into a judgmental category - basically you move thru classes I thru V ( and I think Non-accrual is only when classified III and above ) However, you have to move classifications eventually - and rarely have I seen classified assets perform. AND THIS NUMBER IS A WHOPPING $500 MM ( Increase of 95 MM QonQ).





So what do you do Sterling - you decrease your Loan Loss Provision allocation to inflate bottom-line. AND STOCK SHOOTS OFF.


It may be great for those few who had the opportune long position.





Overall: NPA+CLASSIFIED ASSETS= 800 MM.


NET TANGIBLE EQUITY: $700 MM Approximately.





They are heavy into construction funding (76% of the cause of NPAS)





And based on their actions - I DONT TRUST THEM. When they have to bring these in they will SHOCK

Report this Post Replies: 0 | Reply | Permalink