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Trade: Bought Synovus Financial

|Includes:Synovus Financial Corp. (SNV)

Bought an initial position in Synovus Financial (NYSE:SNV) for the Growth Portfolio. SNV is a Georgia based banking institution hard hit by non performing loans. SNV recently did a $600 equity offering at $4 so the purchase around $3.8 is a 5% discount to that offering. As we've seen on most of these banking deals, the offering eliminates the 'going out of business' fear and allows for the stock to eventually trade more based on normalized earnings down the road in 2011. The extra cash also gives SNV the opportunity to snap up some of the banks that seem to fail every week in GA.

The other reasons to buy are based on the analysis by banking expert Tom Brown and the technicals suggesting prices above $3.8 are support. Do your own homework but don't take too long.

Stocks: SNV