Sell - Price 35.19 on June 29
by Sterne, Agee & Leach

We are making minor revisions to our model and adjusting estimates, largely to reflect the inclusion of the [Federal Deposit Insurance Corp.'s] special assessment to be accrued in the current quarter. For the second quarter, we are lowering our estimate to 2 cents, from 10 cents. For the full year, our estimate remains 47 cents, [versus] First Call's consensus of 61 cents. For 2010, we are trimming our estimate to $1.68, from $1.70, with the Street average at $1.76. The primary driver of the lower 2Q estimate is the FDIC's special assessment, which based on our calculation will negatively impact earnings by 8 cents. Additionally, we have tweaked our credit-cost and net-interest margin assumptions. We remained concerned [by] the bank's exposure to southern California and, to a lesser extent, the Las Vegas markets....Given the depressed level of earnings, which we think will persist into 2010, we expect further price declines in the shares as we move through the second-quarter earnings season. Although the stock is currently trading near our 12-month target price of $4, we are maintaining our Sell rating on the shares, given our expectation of further near-term weakness. Our 34 target is based on our [discounted-cash-flow] analysis, and equates to 19 times our 2010 [earnings-per-share] estimate and 1.2 times our projected year-end tangible book value. Market cap: $1.7 billion.

The only two non-fixed-income ETFs with top grades on the list are bullish currency plays. The PowerShares DB US Dollar Index Bullish Fund (UUP) is a bet on the U.S. dollar against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The Market Vectors-Renminbi/USD ETN (CNY) uses short-term forward contracts to benefit from a rise in China's currency in relation to the U.S. dollar.

DOLLAR/YUAN(REMIMBI), THIS IS GREAT AS WELL.

going up