SYNOVUS FINANCIAL CORP (SNV) 1.68 $0.10 (6.33%) 06:44PM (15 mins delay)

Synovus Financial: Not All Banks Will Be Wiped Out

Sep 23, 2009 - 2:35 AM EDT

Tom Brown submits:

One of the more successful investing strategies we’ve followed this year is what I’ll call, for lack of anything snappier, the Buy-Banks-The-World-Thinks-Are-At-Death’s-Door approach. It works exactly the way you’d think: Find a bank that is a) loaded down with bad loans (preferably in Arizona, California, Florida or Nevada, for maximum investment terror), b) losing money, c) likely to keep on losing money in coming quarters, d) perceived to be short of capital, and e) likely to raise capital.

Then, once you find such a bank, estimate losses over this cycle and, if you’re comfortable with your numbers and the institution’s financial strength, buy the stock aggressively.

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Source: Seeking Alpha (Sep 23, 2009 - 2:35 AM EDT)