Why Banco Santander Is Poised to Bounce Back (SAN)

Why Banco Santander Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish banking giant Banco Santander (NYSE: SAN ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Santander and see what CAPS investors are saying about the stock right now.

Santander facts

Headquarters (founded)	Madrid (1857)
Market Cap	$80.0 billion
Industry	Diversified banks
Trailing-12-Month Revenue	$36.2 billion
Management	Second Vice Chairman/CEO Alfredo Abad Third Vice Chairman Matias Inciarte
Return on Equity (average, past 3 years)	7.7%
Cash / Debt	$471.4 billion / $432.4 billion
Dividend Yield	8.2%
Competitors	HSBC Holdings Citigroup Banco Bilbao Vizcaya Argentaria

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,225 members who have rated Santander believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, CallaHummel, tapped the stock as a rather bankable bargain opportunity:

As both a bank and a Spanish company, Banco Santander is in doubly risky territory. Unlike most banks and most Spanish companies, however, Santander is internationally diversified with a small percentage of its business in Spain, conservative in taking on new customers, and quick to both comply with regulations and make adjustments for future losses. Santander is a bet on Europe, Latin America, and an eventual banking recovery with less of the scandal risk that has plagued the sector. Plus, collect [a 9% dividend yield] while you wait for that recovery.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Santander may not be your top choice.

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Comments from our Foolish Readers

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Report this Comment On February 20, 2013, at 7:18 PM, vaderblue wrote:

Banc Santander =Great Dividend, Internationaly diversified. Large Market Cap,
I am long on SAN The best sticks are the ones u believe in.
It's not always about fundementals but global exposure and growth.
Report this Comment On February 20, 2013, at 11:13 PM, gcialini wrote:

Bla, bla, bla......everytime I read another positive story about SAN (or any other stock for that matter)....it gets hammered.....I know I got in a little high...but my SAN position is getting clocked the last few weeks....being new to investing....I guess I'd better learn about options. Any suggestions to a newbee.....
Report this Comment On February 22, 2013, at 10:14 AM, dragonshon wrote:

Something simple with Options would be to buy (Buy to Open) the Jan 2015 $15 Call for 10 cents or less at about 50 contracts or less, so that you are only putting $500 (+ commission/fees) at risk. This way, you KNOW that the most you can lose is $500 (+ commission/fees). And, for example, if in a little less than 2 years, the underlying stock is at $15.01, your $500 (+ commission/fees) should technically be worth ~$37,000 at this morning's stock price of ~$7.61.
Just make sure you fully understand at least the basics before you make any Options transactions...
DISCLAIMER: I am long SAN, Jan 2014 $15 Call, and Jan 2015 $15 Call if it gets to my bid price today.
T3
Report this Comment On February 22, 2013, at 10:28 AM, dragonshon wrote:

Also, gcialini, since you already own shares of SAN, sell/"write" (Sell to Open) Call Options to get even more income on top of the dividend you will accrue. The dividend is good and seems a bit high, but I believe it is sustainable. I don't know how much you bought your SAN stock holding at but my preference would be to aim for a 6-10% total return/profit per 4-9-month stretch. That's my personal preference; you pick what works/matters to you. Now granted, I'm not any expert at Options, but I just share what I know and learn and what works.
Wish you wealth & health.
T3
P.S.: ALWAYS use Limit Orders for all transactions--Options or Stocks.
Report this Comment On March 05, 2013, at 1:10 PM, cbeb9 wrote:

To "Bla, bla, bla"... If you're new to investing, as you mention, I'd advise you to stay away from options. That's for much more seasoned investors.

updated 1 day ago Sponsored by:
	DOW	15,303.10	8.60	0.06%
	S&P 500	1,649.60	-0.91	-0.06%
	NASD	3,459.14	-0.28	-0.01%

SAN	$6.97		-0.08	-1.13%
Banco Santander Ce…		CAPS Rating:

7

Why Banco Santander Is Poised to Bounce Back

Comments from our Foolish Readers

Report this Comment On February 20, 2013, at 7:18 PM, vaderblue wrote:

Report this Comment On February 20, 2013, at 11:13 PM, gcialini wrote:

Report this Comment On February 22, 2013, at 10:14 AM, dragonshon wrote:

Report this Comment On February 22, 2013, at 10:28 AM, dragonshon wrote:

Report this Comment On March 05, 2013, at 1:10 PM, cbeb9 wrote:

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