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This has been my 3rd foray into Regions Financial (NYSE:RF) and all end up very much the same. Some big wins, some big losses. Regional banks are some weeks "favored" [Apr 16, 2009: Three Banking ETFs to Play your Taxpayer Money Funneled into Financials], and then a few weeks "hated" in this market which changes from thesis to thesis by the fortnight. Regions was one of the 19 stress tested and has not acted well of late. But generally when I've sold it in the past around this chart formation, it starts to fly higher... which means charting has not been helpful at all here.

Management continues to say all the right things, but the market does not seem to agree. So I'm lost in terms of what to do with it... there is commercial real estate exposure here as there are in many regional banks but hey! commercial real estate is just fine thank you. See the stocks for proof.

So if history repeats, I will probably be buying it on the next spike over the 50 day moving average only to be disappointed. But for now it's a ratty chart. I am taking a $1300 loss on this last batch, but had a big win on the name to more than offset it about a month ago.

  • On May 20, the Birmingham, Ala.-based bank said it would raise $1.85 billion in new capital through the public sale of 400 million common shares and 250,000 convertible preferred shares. The bank is trying to satisfy the U.S. Treasury Department's demand that it raise $2.5 billion to shore up its cash position.

Disclosure: No position

Source: Regions Financial Says All the Right Things, the Market Does Not Agree