Making the case for Synovus

By Geert De Lombaerde Posted on September 23, 2009 at 7:13 am

Hedge fund manager Tom Brown says the parent of The Bank of Nashville is just his kind of stock, especially after the recent capital raise.

But the company’s outlook isn’t nearly as bleak as the market seems to think. In the runup to an equity offering last week (about more of which in a minute) the company made it pretty clear that it’s in the process of getting its credit issues under control, and that its underlying profitability is strong. In particular Synovus says that its ongoing program of aggressive problem loan disposition is on track, and that the run-rate on new non-performers continues to improve. Meanwhile, pre-tax, pre-credit cost earnings continue to rise.

Shares of Synovus (Ticker: SNV) have traded either side of $4 for most of the past two months.

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Tags: bank capital, banking, Bankstocks.com, hedge funds, loan losses, stock valuation, Synovus Financial Corp., The Bank of Nashville, Tom Brown  

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