Yesterday shares of Advanta Corp. closed below $1 a share, a 20-year low. The market decline came after Stifel Nicolaus & Co. Inc. analyst Christopher C. Brendler told investors to sell the shares, reversing his “buy” recommendation from last fall. “Since we now believe Advanta will no longer be able to survive, we are forced to cut the stock to ‘sell,’ ” Brendler wrote in a note to investors.
But it would be unwise to count Advanta out just yet. Existing cardholders could see their interest rates rise. Shareholders may see Advanta cut its dividend. And advanta may make changes to avoid any early payback provisions of its current bonds. Joseph N. DiStefano of Philly.com reported on this story, as did the Associated Press.
