SunTrust Banks, Inc. (STI)

Hunch

Simply continueing to load up on banks.

I use buy and hold style on my companies all these are in my real life portfolio and each is a dividend payer holding long term

94

In anticipation of the eventual rebound of the financial sector. A little early for bottom feeding, but I am just indiscriminately putting all stocks that are tagged Bank.

Financials continue to be oversold and STI is no exception.Nice contrarian move at this point. STI's pre-tax profit margin is 27.61%, also has a 5% plus yield at this level.

Almost every negative shy of a giant ape tearing down sun trust head quaters has been priced in. Classic market over reaction.

rally picks

Wow, 14.14 a share, did they just buy Merryl Lynch or something?

An beaten-down, southern bank yielding over 8% with no plans to raise additional capital or cut its dividend. Also rumored to be an acquisition candidate for JP Morgan.

Mechanical Strategy: Every year (1) Take the 500 biggest stocks in the caps database (in terms of market cap) - (2) Pick those ten stocks with positive earnings whose price/book values are closest to 1.

Fear factor doen't just star Joe Rogan anymore. Please welcome the new host "Joe financial stocks" ... the fear has dropped this and other stocks way too much. Look out for big earnings and growth.

When the dust settles from all of this, SunTrust will end up ok. On the weakness side, they do have a poor home equity portfolio that is overexposed to poor markets, and that certainly needs to be noted. In the past few months, they have been working aggressively with delinquent mortgage borrowers to form alternate repayment plans in order to avoid costly foreclosures. Their yield is also too high to be taken seriously. Will they have to cut the dividend? I used to think so, but when you look at all the Coke stock they hold, they could potentially keep paying the same div every quarter. They are perceived by many consumers as a strong, conservative bank and thus many flock to it when other banks are in trouble. SunTrust also has smart C-level managers. CFO Mark Chancy has shown he has the expertise and creativity to guide the company through these times. If you just look at their sale of some of their Coke stock that they parted with this past quarter, you can see that suntrust has a big get-out-of-jail-free card in their Coke stock. The financial engineering that Chancy and CEO Jim Wells have orchestrated in the sale of the stock this past quarter is rather complex, involving different sale dates, differing planned sale volumes with most positions hedged against future fluctuations in price. On their conference call, most of the analysts didn't even try to understand that portion of it.
SunTrust's efficiency initiative, (does every bank have a cost-cutting, "efficiency" initiative nowadays??) E-Squared, will result in savings of hundreds of millions of dollars this year.
I don't think it will be a huge performer over the next 6, or even 9 months, but I think this time next year you will have wished you had purchased it. There's not huge growth here, but you get relative safety and you've gotta love those dividends. (assuming they don't cut!!)

Poor management. Running out all the good revenue generators.Employee morale is pathetic

This bank is likely going to end up being forced to merge like NCC as I believe they deeper problems that will be exposed.

suntrust is a solid bank, hit on the mortgage side, but what bank wasnt, will continue to rise in coming years, and paying the tarp money back is a good sign

This financial stock has taken a pounding over the credit mess, but it is resiliant. It's dividend is steady and it being the 7th largest bank in the country it will withstand the temporary downswing. Look for it to make a comeback by late to early next year. This is a long term choice.

They're a good bank

With all banks having a massive negative in earnings. Prices have plummeted to enormous discounts. Some banks are looking extremely sweet for investors.

Low PE, high dividends, still manages to churn out a substantial profit during this "crisis" are the banks that stands out. Big fish eats small fish. If you are still "strong" during this time, you will just get even bigger. Not only investors profit from economic fall. Financially strong companies profit from takeovers.

Still waiting for the bottom to show? Why bother? With this much discount, by the time you do see the bottom, it would have made an immediate U-Turn and head for the sky. By the time you see the bottom, it will be too late to get in.

GOOD P/E RATIO, HIGH DIVIDEND RATIO. SHOULD HELP WITHSTAND IMMINENT MARKET DOWNSWING.