Yesterday I continued to take advantage of the plethora of cheap stocks available as I added more to my Sun Life Financial (SLF) position under $30/share, reducing the average cost of my stake in the process. Sun Life recently reported a loss in their third quarter due to massive writedowns and charges related to the failure of Washington Mutual (WM), Lehman Bros. (LEH), etc.. Excluding the impact of these write downs Sun Life's earnings would have come in flat from 2007 at $1.00 per share.
Sun Life's CEO Don Stewart mentioned that SunLife is well positioned to weather the global storm and reiterated Sun Life's dividend (currently $1.44/share, yielding about 4.9%). There has been speculation that Sun Life recently sold it's stake in CI Financial (CIX) as a way to shore up capital instead of bulking up for a U.S. acquisition as reported.
Sun Life is trading at a P/E of 7.6x and very close to five year lows. The stock is off about 48% year to date.