Wednesday, February 3, 2010

Synovus Financial Pounded on TARP Repayment Fears

Now this news from CNBC and the fact Synovus Financial (SNV) is down 10% tops the list of absurdity. No way SNV would issue any share to repay TARP. They aren't in any pressure and in fact shareholders don't want them to repay TARP at this time. Maybe if the shares jumped to $5-6 they could consider an offering to repay TARP. Otherwise, thats just an issue for the major banks like PNC that did an offering this morning.

Buy the dips from the dips!

Analysts said regional bank shares were hurt by the prospect of TARP repayments, including dilutive common stock offerings like PNC's announcement, and investor worries about first-quarter 2010 performance.

Edit 3:10
: Interesting note from FBR on buying the regionals on this dip.

Buy! says FBR Capital Markets analyst Paul Miller in a note to clients today.

On a selective basis, we believe that such an overhang may present an attractive entry point for investors to add or build positions. Names that we would look to take advantage of near-term weakness would be Fifth Third Bancorp (FITB), Huntington Bancshares (HBAN), SunTrust Banks (STI), and ZION.

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