Prime Stock Advisory Letter for December 7th, 1998

Position Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher.  We recommend that stop orders be placed at the time of purchase,  and once the position has moved profitable we recommend a stop be placed a minimum of 3/8th above the purchase price and moved higher as the position moves higher.

Today's Comments:  The overall market moved sharply higher on Friday,  in what appears to be a bounce upwards from the recent declines the market has incurred.  While Friday's rally was impressive,  the downward trend of the market remains in tact,  and as a result I expect the overall market to continue to move lower.  The high tech sector benefitted from an institutional investor conference in Scottsdale, Arizona.  The conference ended last week,  and I expect the positive effects of that conference to be reduced as we move forward.  From a fundamental standpoint the market continues to look over valued.  The Bottom Line:  The market should move lower.

Company: SunTrust Banks, Inc.     Symbol: 'STI'       Closing Price: $74.75/share.
YH: $87.75     YL: $154.00     EPS: $3.46      P/E: 21.6     Forecasted EPS: N/A
Dividend: $1.00        Yield:  0.13%      Ex Dividend: 11/27/98
Price Targets:  $78.125 & then $87.44         Downside Stop:  $71.625
Options Recommendation: December 70 Calls,  Symbol 'STILN' @ $5.25/contract.

Company Description: This company is a major regional bank.

Recent News:  11/25  Merger Rumblings are bullish for banks

Our Analysis: SunTrust Banks  is a component of the Philadelphia Banking Index 'BKX',  and the S&P Banking Index 'BIX'.  The shares of 'STI' gapped higher on the open of trading on Friday.  They finished the day closing above a key upside resistance level on heavier than normal trading volume.  The shares should continue to move higher and test $78.125/share,  a point of support established in mid June of this year.  If they close above above that level then they should continue to move higher and test $87.44/share,  they closing high established in mid July of this year.  The recent reduction in interest rates should help the earnings of the banks.

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