Regional Banks Unjustly Given a Bad Rap; Special Report by Leading Financial Web Site Penny Stock Detectives

In a recent Penny Stock Detectives article, editor states his belief that with extensive market volatility causing a lot of havoc in individual portfolios, many investors don't feel they have a safe haven to hide in and earn some income.

New York, NY (prHWY.com) July 11, 2012 - In a recent Penny Stock Detectives article, editor Sasha Cekerevac states his belief that with extensive market volatility causing a lot of havoc in individual portfolios, many investors don't feel they have a safe haven to hide in and earn some income. Cekerevac notes that most of the smaller regional bank stocks don't have the exposure to international derivative investments, which is causing many problems for investors, but it is the reason why these stocks should be considered as safe investments.

"...if someone were looking for a place to park one's funds and earn some yield while waiting for a better entry into other assets, regional bank stocks are an interesting sector to investigate," believes Cekerevac.

A recent report from Bloomberg stated that in the first quarter, 17 of the 24 smallest bank stocks increased lending by 9.8% from the prior year. The report also states that the four largest bank stocks decreased their lending by 4.9%. This is yet another positive market sentiment for smaller bank stocks, picking up business that the bigger firms are leaving behind, comments Cekerevac.

Sterling Bancorp is a financial firm serving the N.Y. metropolitan area. According to Cekerevac, for the first quarter, which ended March 31, 2012, the company had an increase in net income of approximately 40.0% compared to the prior year's first quarter. Portfolio loans grew 13.0%, and total deposit increased by 15.0% reaching almost $2.0 billion year-over-year. Earnings per share grew to $0.15 diluted, up 25.0% from the last year's first quarter.

The market sentiment for smaller bank stocks that pay a good dividend yield has been quite strong over the past year. Sterling pays a forward dividend yield of 3.8%, an attractive proposition when compared to the 10-year U.S. Treasury notes. As with all stocks, taking advantage of weak market sentiment in a strong company can be advantageous for the long-term investor.

With the European economic situation continuing to implode, regional bank stocks that have very little, if any, exposure to the international markets and a solid dividend yield will continue to have a favorable market sentiment, in Cekerevac's opinion. This positive market sentiment might last several years if U.S. interest rates remain low. Considering where U.S. interest rates currently are, investing in regional bank stocks that pay a higher dividend yield and are growing their business is a viable alternative. In addition, there is the potential for capital appreciation over the long-term, believes Cekerevac. This combination appears quite favorable for investors who continue to show positive market sentiment through their consistent buying of regional bank stocks on dips.

"As long as interest rates remain low and the overall market volatile, look to regional bank stocks to show positive market sentiment," concludes Cekerevac.

To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com

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