Bollinger band Breakouts

[stevenck]

STSA ..I don’t advice to buy this one unless your watching it VERY close…..I am only trying to time the bottom and hope it jumps back…. I’m going to take a week and do nothing in trades maybe….last weeks losses has me to tense to relax ……

The bad news that dropped the price…

Sterling Financial reported a massive third-quarter loss of $463.7 million, or a loss of $8.93 per share, which compares with net income of $5 million, or earnings of 10 cents per share a year earlier.
In the latest quarter, the beleaguered Spokane commercial bank reported a one-time charge of $227.6 million to account for the impairment of remaining goodwill related to banks that Sterling acquired from 1998-2007; another one-time charge of $195.5 million to increase the allowance for loan losses; and another non-cash valuation allowance of $143 million.
Last week, Sterling Financial, the parent company of Washington’s second largest bank, announced a management shakeup on the heels of receiving a cease-and-desist order from state and federal regulators.
Late Thursday afternoon, shares in Sterling (NASDAQ: STSA) plunged more than 10 percent in after-hours trading, dropping 12 cents to around $1.
Bank officials said they were “exploring options for raising capital” to strengthen the bank.
The bank said its non-performing assets (NPAs) grew to more than $818 million in the latest quarter, including $134.7 million in residential construction NPAs in the Puget Sound area, which is about 16 percent of the bank’s total NPAs in residential construction.

The possible good news to bring the bounce…

"In the third quarter, Sterling continued to make progress on the four objectives in the recovery plan that we launched last year. Sterling is working through problem loans, maintaining liquidity, addressing capital needs and improving management oversight. In addition, Sterling and its financial advisor are exploring options for raising capital to strengthen Sterling," said William L. Eisenhart, chairman of Sterling's board of directors. "Sterling's actions reflect these important steps to put the company on the right course for the future."
"The leadership team is committed to building upon the strength of Sterling's relationship-focused franchise. Throughout this cycle, we have grown deposits, lowered funding costs, deepened customer relationships, improved product offerings and maintained good liquidity," said Greg Seibly, acting president and chief executive officer. "We recognize the challenges before us and we have developed a focused recovery plan that is aligned with the priorities established by our board of directors."
Third-Quarter 2009 Highlights
Total deposits increased 3% from September 30, 2008 to $8.28 billion.
Tier I leverage capital ratio was 7.0%.
Allowance for credit losses was 3.48%, up from 2.71% at June 30, 2009.
The pace of growth of classified and non-performing assets has slowed since June 30, 2009.
Net interest margin was 2.98%, an improvement of 11 basis points over last quarter.
Liquidity Management
A significant component of Sterling's strategy is to maintain a strong liquidity position and grow core deposits. "We have made significant progress reaching new customers, while ramping up our level of service to existing customers. We continue to grow the number of our transaction accounts and business deposits," stated Mr. Seibly.

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