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Stockchase Opinions

Charles LannonBanco Santander SASANDON'T BUYNov 12, 2013

(Market Call Minute) More equity raises ahead of them and prefers others.

$8.63

Stock price when the opinion was issued

$13.50

As of Jun 18, 2026. Market Open.

banks
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BUY

The stock is breaking out. They are crushing it in Mexico.

BUY
If Ukraine gets settled soon, it's a great buy, as it's very cheap. Politics is getting in the way. A worldwide bank, but the bulk is in Europe. He'd prefer ING.
DON'T BUY
European bank stocks have been hammered worse then North American ones because of the Russian war. Valuations now look cheap, like 6x PE with SAN. However, ING is better-run and trades at a similar PE, and pays a 6% dividend, so he prefers it.
BUY
A great CEO, though he's never had the nerve to buy it. The best European bank.
BUY
Banco Santander has a massive franchise and good potential to do well.
WEAK BUY
A unique franchise--a Spanish bank with a strong presence in Latin America as well as Europe and UK. It's a retail bank. Look at their growth in emerging markets, which is the key to the story. This can be volatile given the economies of those countries, especially during Covid. That said, they execute well. You buy this for the growth in Latin America.
PAST TOP PICK
(A Top Pick Oct 17/18, Down 1%) Tailwind went when Fed slowed on interest hikes. Dissatisfied holding it. Wouldn't panic sell it, but it depends if he finds a better place to park capital.
COMMENT
Low book value. The premise was that it was cheap and with the dividend you would do well and with interest rates going higher in Europe you would get your growth. That never happened.
DON'T BUY
European banks have been hit hard. He sees better value in ING Groep NV. Cheaper and better.
BUY ON WEAKNESS
It held up very well during European economic crises, but the issue is they are waiting for higher interest rates in Europe. After this sell-off, he'd buy it. It's Latin-focussed, so if you believe in those territories, it's a good buy.
DON'T BUY
If you are selling anything to buy bit back, consult your tax advisor. He would not go near any Spanish banks because the country is over banked. Latin American exposure is also a risk.
BUY
He's long owned this. European banks are cheap like American ones in 2015-6 before they took off. SAN does 25% business in Brazil, and their recent election brings clarity. So, their economy is ready to go. SAN is a well-managed bank. The problem with Europe is getting their central bank to normalize the yield curve, and until then it'll be tough slogging.
TOP PICK

Interest rates will go up after the ECB changes chairs in June 2019. Each quarter they put up $2 billion+ of net income and are trading a hair above book value now, plus negative sentiment to Euro banks now. (3.3% dividend yield, Analysts' price target: $106.76)

HOLD

He doesn’t own this, but he owns comparable banks. The whole global banking sector is trading at very cheap multiples. They are all under pressure from the flattening yield curve, and they all pay hefty dividends. The bank’s poor performance is sector-driven more than driven by the political issues in the countries where it does business.

HOLD

He owns this as a European bank holding in the portfolio. The flat yield curve is holding them back. He will continue to hold it for when the yield curve normalizes.