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Company name Regions Financial Corporation
Stock ticker RF
Live stock price [stckqut]RF[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $11.52
Target stock price (averages with growth) $-6.26
Target stock price (averages with no growth) $-21.83
Target stock price (manual assumptions) $8.58

The following company description is from Google Finance: http://www.google.com/finance?q=rf

Regions Financial Corporation (Regions) is a financial holding company. Regions operate throughout the South, Midwest and Texas. The Company provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance and other specialty financing. Regions conduct its banking operations through Regions Bank, a commercial bank. As of December 31, 2011, Regions operated approximately 2,100 automated teller machines (ATMs) and 1,726 banking offices in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas and Virginia. It provides additional financial services through its subsidiaries, which includes Morgan Keegan & Company, Inc. and Regions Insurance Group, Inc. In April 2012, it sold Morgan Keegan & Company, Inc. and related affiliates to Raymond James

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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I have not thought of the Coffee Can portfolio in many years until I read a recent article on Daily Reckoning. This excellent article reminded me of the decades old investing philosophy. Basically, the concept is to buy truly excellent companies and then ignore the investment. The theory is that constantly worrying about the various movements in the market will only give you an ulcer. It will also ruin your return if you react at the wrong time. If you have enough diversity in your holdings, surely one of them will result in a huge gain.

We have all heard the stories about someone’s aunt that found her recently departed husband’s desk drawer full of stock certificates from IBM, Apple, or Wal-Mart that were bought many years earlier and then forgotten. These heart-warming stories are typically told that the aunt was destitute until the discovery but then was financially independent for the rest of her days.

There is a significant problem with the Coffee Can Portfolio. I believe I have solved this problem with my GOPM (Grow on Other People’s Money) strategy that I describe in my book, The Confident Investor. The basic problem is that most people do not have sufficient reserve funds to  diversify their holdings appropriately. My strategy gives investors the ability to diversify their holdings and grow their investment at a more rapid pace. Once the investor accumulates a  sufficiently significant position in a particular company, the Coffee Can principle starts. The investor can sit on that position of a great company and forget about the investment for many years.

Jump over to Daily Reckoning and read about the Coffee Can Portfolio. It is a good article and worth your time.

It is also worth your time to read my book, The Confident Investor, if you are interested in growing your portfolio. You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.