Sterling Financial Corp (NASDAQ:STSA)

CAPS Rating: 3 out of 5

A bank holding company which provides personalized, quality financial services and 'Perfect Fit' banking products to its customers consistent with its 'Hometown Helpful' philosophy.

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Player Avatar PeninsulaKid (< 20) Submitted: 1/5/2011 9:42:36 AM : Underperform Start Price: $17.67 STSA Score: -24.31

Recent capital infusion will quickly evaporate as company has no ability to generate earnings going forward anytime soon. The fact that this "bank" is trading anywhere above book value is a complete joke and a one time opportunity for current shareholders to sell. Nearly $1 billion in problem loans and half it's buiness model- construction and land development lending gone for years to come. How does this "bank" make money? Recapture of the deferred tax asset will be years in the making, if ever, and totally dependent upon a rapid recovery of the Pacific NW economy- not going to happen. The bailout of this bank was politically motivated but in the end will end up like WAMU- with Private Equity throwing away their money and the local shareholders getting screwed.

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