I am glad my professional standing does not depend on
Providian. It's amazing that it can continue to get these endorsements--and timid qualifications of same:
NEW YORK, May 26 (Reuters) - Shares in Providian Financial Corp. fell nearly 10
percent in late afternoon trading Wednesday as the consumer lender lost its designation as
''single best idea'' by a Wall Street firm.
Providian went down for the third straight day, off 11-1/8 at 84-7/8, making it one of the
leading percentage losers on the New York Stock Exchange.
Earlier in the day, Prudential Securities analyst Jennifer Scutti removed her ''single best idea'' designation but maintained her
''strong buy'' rating for the company, according to sources within the firm.
Scutti said Providian's stock had dropped by more than 25 percent since early May, aggravated by reports that it was being
investigated by the district attorney's office in San Francisco, according to market sources familiar with Scutti's report. The
office has yet to explain the reason behind the investigation.
Scutti said the company's fundamentals remained strong, adding that she expected robust account and fee-based income
growth, the sources said.
Scutti was unavailable for comment.
Providian officials declined comment on the stock's
performance.
Meanwhile, CIBC World Markets started coverage of the
company on Tuesday, assigning it the same "strong buy" rating, according to another market source.
A day earlier, Providian was hit by a lawsuit charging alleged unfair and deceptive business practices.
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