Author Topic: SAN - Banco Santander  (Read 107053 times)

John Hjorth

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« Last Edit: January 16, 2019, 12:08:16 PM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai


John Hjorth

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”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

TwoCitiesCapital

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Re: SAN - Banco Santander
« Reply #232 on: April 12, 2019, 08:17:41 AM »
Reuters [April 12th 2019] : Santander launches offer to buy up to 25 percent of Mexican unit in an all-share deal.

Well dang! Wish I still held the Mexican ADS' but had just rolled back to the parent a month or so go given the relative outperformance of BSMX versus SAN.

Will be interesting to watch and is probably a smart move (just like the Brazil tender has proven to be), but this may take away some flexibility with my lucrative trading strategy of rolling back and forth between the subs/parent :/

petec

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Re: SAN - Banco Santander
« Reply #233 on: March 09, 2020, 05:41:08 PM »
Is anyone watching this? I have not followed but staggered by how cheap it is. 0.45x book and 5x earnings (consensus). I have not dug yet but interested in any thoughts.
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BroKon

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Re: SAN - Banco Santander
« Reply #234 on: March 09, 2020, 08:53:50 PM »
Its hard to find an expensive European bank at the moment (except maybe some Scandis - and that is only relative). Market is assuming NIM will continue to get crushed, which is probably a fair assumption given where yields are, and NPLs will rise, again not an unfair argument either, with energy companies the new worry. But I think you need to extrapolate continued bad news out a few years to justify these valuations.
ECB meets on Thursday so if they don't cut rates I would expect some kind of bounce (subject to no virus news). I think a basket of euro banks at these prices may make sense, but I thought they were cheap last week too. There are a lot of investors with very polarised views on these, so I am sure someone will be happy to take the other side of the argument.
« Last Edit: March 09, 2020, 08:56:54 PM by BroKon »

TwoCitiesCapital

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Re: SAN - Banco Santander
« Reply #235 on: March 09, 2020, 09:19:29 PM »
Is anyone watching this? I have not followed but staggered by how cheap it is. 0.45x book and 5x earnings (consensus). I have not dug yet but interested in any thoughts.

Still long and still wrong :/

Seems super cheap. Seems like an excellent bank with excellent diversification, and yet the stock only really moves in one direction....

elliott

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Re: SAN - Banco Santander
« Reply #236 on: March 10, 2020, 01:49:12 AM »
I dont know how accurate morningstar figures are, but according to them its been about 10Y since Santander achieved a ROA above 0.5% (which is already a low bar), and they are quite levered (equity ratio of less than 7%).
I had the impression that Santander was one of those companies that had been more worried about growing than being profitable. But its just an impression, I have never looked into this company, although I was a client once.

petec

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Re: SAN - Banco Santander
« Reply #237 on: March 10, 2020, 04:36:25 AM »
Euro-NIMs do worry me. The Eurozone is f**ked.

What I want to dig into is how much of the market cap is justified by the Latin American operations, which are generally superb.
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