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Banco Santander, S.A. Message Board

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  • dcisinsane dcisinsane Jan 31, 2012 4:17 PM Flag

    Earnings Thoughts

    Dont worry ... they'll have to cut the dividend eventually and you'll make your $$ back by shorting this over-leveraged financial .

    What could possibly go wrong right ???


    Glad I sold . I still may buy back in but time is my buddy .

    Feb should be dicey after such a big POP In JAN in the USA market and in financials .

    GL kids.

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    • Considering dividend is paid in stock...what does it matter with regards to cash flow...and, I bought in at the 7.10 level, so I am not too worried...I hate to see profits disappear, but that is the nature of the beast.

      And DC...have you even taken a look at STD's financials? Your bearish sentiment is nothing more than contrarian rhetoric. Cash flow, capital ratios, and provisions for future losses contradict your opinion. While the bank is definitely levered, I wouldn't call it over levered. What bank operates without leverage? Loans are assets to a bank and lending low cost funds is how they make money. They are one of the few banks out there experiencing loan growth right now which should bode well for them in the coming months.

      While I agree with your thoughts that February will be "dicey," I don't agree with your rationalization. If you were would have meant a broad sell off due to the earnings miss. I think we push higher from here for a bit, baring any additional EU/Greece drama, with some profit taking along the way.

      Who knows and good luck on the sidelines!