# Banco Santander (NYSE:SAN)



## Toronto_Boy (Apr 9, 2013)

I would like to hear your comments on Santander (NYSE: SAN). 

From what I read, they are diversified into central & south America; not just a European bank anymore. Thanks guys.


----------



## thompsg4416 (Aug 18, 2010)

Here is an older thread I started sometime ago.. 

http://canadianmoneyforum.com/showthread.php/13184-A-little-taste-of-Spain-SAN?highlight=Banco

In short yes its quite diversified although around 50% of its assets are split between the Uk and Spain. That aside its quite big in Latin America - Mexico/Brazil and Chile.

I've followed this one for a while and still hold a small position for the dividend. One thing to pay attention too is that Spain has a 21% withholding tax so the div isn't quite as juicy as it looks. I made a good chunk of money on it when it was down to 5 dollars. Having watched for a while if it drops below 7 its a good time to buy if your looking to get in.


----------



## nakedput (Jan 2, 2013)

not sure if the dividend seems sustainable as the payout ratio is quite high. Seems like a pure contrarian play (similar to Lloyd's Bank or any of the other distressed Euro banks) that could yield tremendous returns long-term when things stabilize a little more.


----------



## thompsg4416 (Aug 18, 2010)

nakedput said:


> not sure if the dividend seems sustainable as the payout ratio is quite high. Seems like a pure contrarian play (similar to Lloyd's Bank or any of the other distressed Euro banks) that could yield tremendous returns long-term when things stabilize a little more.


I took the liberty of crunching some numbers although you could probably look them all up as apposed to doing it manually... WFC looks awfully attractive doesn't it!!


DPS/EPS

SAN - .689
BNS - .112
BK - .116
CS - .114
WFC - .0849


PE
SAN 25
BNS 11.27
BK 22
CS 34
WFC 10.89


----------



## nakedput (Jan 2, 2013)

thompsg4416 said:


> I took the liberty of crunching some numbers although you could probably look them all up as apposed to doing it manually... WFC looks awfully attractive doesn't it!!
> 
> 
> DPS/EPS
> ...


Wells Fargo is actually a great bank. Did not really have much issues during the credit crisis and they responded very well. Currently generating solid cash flow, buying back shares, and wants to increase the dividend. I like the play. The risk to reward ratio on this stock is much lower than any European bank but I am still looking into these distressed Euro banks as a pure long term contrarian play. The profit potential (as long as the Eurozone actually stabilizes) is insane.


----------



## thompsg4416 (Aug 18, 2010)

Good time to jump into SAN long term or trade I have a bid in now at 7 hopefully it gets picked up. I'll unload at 7.30 or 7.35.


----------

