Monday, August 25, 2008

CITI doesn't trust Suntrust! ~ SunTrust Banks, Inc. (Public, NYSE:STI)

Citi downgrades (STI) to SELL!

40.33 -2.38 (-5.57%)

.... we've also noticed SunTrust is funding "new" mortgages... hmmm... with home prices still on the decline, how smart is that???

PONYTAIL update: Jon Najarian, market analyst at OptionMonster Holdings Inc., on Monday said he saw evidence of options traders making bearish bets on Wells Fargo & Co. and SunTrust Banks Inc. . "Neither Sun Trust, nor Wells Fargo trades are naked, out-the-money put purchases," Najarian wrote in a research note. "Nope, not the bankruptcy bets, these are bets that Wells Fargo and SunTrust move lower, but not that they head down 40% or 50%. Instead these show that there are interested parties that still look for downside movement, but these bets are that the move is 10% to 15%. That would take SunTrust to $35 or Wells Fargo to $25."


BUY ON THE DIP said...

It’s one thing when perfect strangers level accusations, but when the carping comes from a family member - even an estranged one - it really hurts. That’s the experience that SunTrust Banks (STI) has endured in Monday’s trading. Shares declined 5%, after Citigroup commenced coverage of the bank stock with a sell rating. It’s not just your run-of-the-mill sell call, either. The skepticism came from a bank analyst named Greg Ketron, a name that SunTrust management would know especially well, inasmuch as he occupied an office at the bank for 21 years, serving as recently as last summer as the bank’s chief spokesman before leaving to take on the role at Citi as a bank sector analyst. In his first whack at SunTrust’s investmentworthiness, Ketron said the bank’s expansion into real estate securities had created sizable mark-to-market losses.

Anonymous said...

Ride that baby down... got in last week on STI.

Anonymous said...

New home sales cannot be good for tomorrow. It the down is positive tomorrow I'm gonna shit bricks.

Good luck with BIG I bought some puts on the pop the other day!!!

Anonymous said...

Short WB for the long haul.

I shorted FRE on the way up today. it popped 19% because they sold a couple billion in debt, yay! too bad they need to raise 229billion by September. :-)

Anonymous said...

Good call JD... didn't you short LEH on friday too?

Anonymous said...

Yup, shorted LEH Friday near its high.