Savvy Trades and Investments

[SSKILLZ1]

FHN

I brought a small position at FHN At $10.64, and will buy more on weakness.

FHN had a buyout offer around $25, than the deal fell apart, now it is in the 10's, and I see tremendous value here.

1) FHN trades at discount to tangible book value $11.50). Big regional banks like this rarely trade at discount to tangible book, so that is a strong plus. Normally You get 1.5 to 2.0 Tangibe book on these banks. That would conservatively put fair value around $17 on that analysis.

2) FHN based on what I feel is getting near trough earnings, should still be be able to produce .35-.40 a quarter annualized. at the trough. So a PE about 7 times what I feel is trough earnings. I think a 12 PE at least is warranted on banks like these hence I feel FV Is around $17-18 right now as well if you value this bank on a EPS levels.

3) FHN Pays a healthy dividend of over 5.6%. So it is nice to get piad while you wait.

4) FHN Asset quality is solid, it loan and deposit growth are decent. And serves a good geographical region to serve in this country.

Conclusion: I think FHN is very attractive at current levels and I will add more on weakness. All is just my opinion, and I could always be wrong though.