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Opinions Darren Sissons
Banco Santander SASANDON'T BUYOct 09, 2014
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Chris StuchberryChris Stuchberry
Rick StuchberryInterest 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)
Chris StuchberryHe 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.
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.
Rick Stuchberry
One of the global behemoths in the banking space. It survived the crash relatively well. The issue he has is its domestic market. The regulatory environment in Spain has been very poor. It got to the extent where they did so much financial engineering that they guaranteed the tax assets, so that companies could take revenue tax losses and use that to build equity. To him, that is an extreme form of financial engineering. Thinks the dividend is likely to come down a little. Longer-term you would be better off looking at some of the other markets. US big money centered banks have been thriftily recapitalized. Government is continuing to take cash off of them in terms of social litigation. UK banks are probably in the same shape.