When the obituary is written on this compnay, it will be said that the two things that led to their lack of competitiveness was inadequate and obsolete technology and a management group that became so internally focused that it forgot what the objective was. I have heard (doesn't mean it is true), that Wells has backed away because of the anitiquated technology and the cost to bring it up to speed.
This really isn't that complicated. If the stock was trading at a 10% premium to the market when Phil took over (it was at least 10%) and it trades at a 10% discount today (I'm comfortable with that as a minimum) then the current market cap would be 20% higher if STI had not lost that premium.Today's market cap ($26 billion) would be $31 billion...give or take. That means had current management operated the company so that the "market" thought as highly of the stock as it did 9 years ago, the stockholders would, in the aggregate, be $5 billion richer. I think that is an awful indictment of mangement, don't you?
Re: first in for ------ North Carolina
by: first_in_for_the_ride 04/12/05 10:37 pm
Msg: 12539 of 12543
"... and I doubt that NCF's earnings will be separately reported. If they are, it will only point out the weakness of STI."
>> Now they've merger, the reports will reflect strength. That's what FUTURE investors are looking for. Right? Thanks. <<
Subj: Re: Florida & North Carolina are Golde
Date: 04/13/05 07:16 am
"You miss the point.... That means BILLIONS of dollars of market cap has been lost by this management team."
>> What EXACTLY was the market capitalization 7 years ago? I believe it is larger today. <<
You miss the point. To investors, stock price is what is critical. Prior to Phil taking over, STI traded at a 10-15% PREMIUM to the Keefe index. Today it trades at a 10-15% DISCOUNT. That means BILLIONS of dollars of market cap has been lost by this management team. How can those results be defended?
I don't know that CCB's earnings are reported separately since their merger with NCF several years ago; and I doubt that NCF's earnings will be separately reported. If they are, it will only point out the weakness of STI.