SouthTrust Corporation is a regional bank holding that operates through its subsidiary bank, SouthTrust Bank, and its non-banking subsidiaries. SouthTrust operates 641 banking offices located in Alabama, Georgia, Florida, North Carolina, South Carolina, Tennessee, Mississippi and Texas. SouthTrust is engaged in a full range of banking services, and through its bank-related subsidiaries, also offers a range of other services including trust, mortgage banking, leasing and brokerage services.

April 19, 2001

SouthTrust Corporation is a regional bank holding that operates 641 banking offices in nine states in the southeast. The company provides banking, trust, mortgage, leasing, and brokerage services. Shares of SOTR have performed well despite a tough market. On Thursday, the stock hit an all-time high of $47.20, representing 90% gain over the past year. SOTR is moving higher on news of a rate cut from the Fed, a strong earnings report, and a 2:1 stock split, payable on May 11th. We believe that SOTR may be ready for a split run now that most of the major banks, have announced earnings and the Fed has become more aggressive. From a technical standpoint, SOTR has support at Wednesday’s intra-day high of $46.41 with additional support at $45.41, the 5-dma. Resistance is Thursday’s intra-day high of $47.20 and then possibly $48 or $50. Look for entry points on a bounce off of $46.41 or a breakout above $47.20 on volume of at least 500,000 shares by noon. We plan to set stops at $44 to limit potential losses.

Picked on April 19th @ $46.96
Change since picked +0.00
Stop Loss @ $44.00

May 10, 2001

SouthTrust Corporation has been gaining momentum over the past three sessions in front of the 2:1 split, payable after Friday’s closing bell. It is our policy to close “split run” plays one day prior to the ex-date, so we are closing SOTR tonight. However, you may want to hold out for another day due to recent pullback. If so, protect yourself with trailing stops and make an exit before the end of Friday’s session.

Picked on April 19th @ $46.96
Profit/Loss = +0.14 (+0%) (Closed Thursday at $47.10)
Best Profit = +2.24 (+5%)

May 8, 2001

SouthTrust Corporation has been consolidating in the $45.50-$47.50 range over the past five days. On Tuesday, shares of SOTR traded to an intra-day high of $47.27 before pulling back to a close of $46.75 on light volume of 451,000 shares. The stock is gaining momentum as we approach the 2:1 split, payable on May 11th, so SOTR could make a run at its all-time high in front of the payable date. For now, support is the 20-dma at $46.25 with stronger support at $45.75, Monday’s intra-day low. Resistance has moved up to Tuesday’s intra-day high of $47.27 and then the April 26th intra-day high of $48. Traders may consider starting new plays on a bounce off of $46.25 or a move above $47.27 on volume of at least 500,000 shares by noon. We are leaving our stops at $44 and we plan to exit this play by Thursday afternoon.

Picked on April 19th @ $46.96
Change since picked –0.21
Stop Loss @ $44.00

May 6, 2001

SouthTrust Corporation spent the entire week consolidating after hitting an all-time during Monday’s session. On Friday, the company announced that it agreed to buy CENIT Bancorp Inc. (CNIT) for approximately $117 million in stock. Shares of SOTR pulled back from an intra-day high of $46.84 to close at $46.31 following the news. Volume was on the light side with just 688,000 shares changing hands. Volume has been trending lower over the past three days and the acquisition could put a drag on the stock. SOTR may continue to trade in the $44-$47 until the volume returns. However, the 2:1 split, payable on May 11th, may be the catalyst to push the stock higher. In the meantime, support is the 20-dma at $46.06 with additional support at $45.45, the April 23rd intra-day low. Resistance is Friday’s intra-day high of $46.95 and then the April 26th intra-day high of $48. Look for entry points on a bounce off of $46.06 or a move above $46.95 on volume greater than 500,000 shares by noon. We are keeping our stops at $44 to limit potential losses.

Picked on April 19th @ $46.96
Change since picked –0.65
Stop Loss @ $44.00