John StephensonBanco Santander SASANCOMMENTOct 13, 2015

Are buying Webster Financial. A brilliant move. Banks as a whole are benefitting from rising interest rates, expected later this year.

Likes management's focus. Not constrained geographically. Valuations in the sector are pricey. Be mindful of your position size, and remember that banking is a cyclical industry.

He'd probably pick Citi. Slimming down its foreign operations. CEO doing good job with the turnaround. Very reasonable valuations, close to book value.

SAN is a good bank and well-managed. Lots of exposure to Latin/South America and to Europe. The one to pick if you were really intent on international exposure. More volatile, as the economies it's in tend to be more cyclical.

There's lots of talk on the loss of American exceptionalism, and he thinks a lot of that is by people who are angry at America. Those comments are less about businesses and the entrepreneurial spirit. Still seeing pretty dynamic operations in the US.

Good quality franchise. Similar to a BNS, but bigger and more global. Citi has done quite well. Based on prior history, he'd default to SAN.

If you own, hold it, but buy more at $10-11.

Likes banking, and Europe is starting to get its act together and there's some growth there. Owns no European banks at present, he's focused on NA. This one has gotten itself on a better strategic path. Solid dividend.

Has jumped 142% in the past 12 months. Are buying a community bank in Connecticut, part of their plan to dominate the northeastern U.S. Their goal is 20% return on tangible equity by 2028. 

When rates were negative in Europe banks were good to own, It is a good company but it is time to take some profits.

Offers consistent 10-15% returns over the past 10 years, 15% currently. At fair value and are improving operations.

He's going to pull the lens back, as he likes to look at things from a macro perspective. In 2020, we went from falling interest rates for 40 years to what is likely rising long-term interest rates for the next 25-30 years. That benefits banks in particular.

If you look at the XLF in the US, after going nowhere from 2008-2021, it finally made a new high. Beginning of a new long-term bull market that probably goes on 10-12 years. During that time, earnings go up and so do dividends. The multiple expands.

This year, the European banks joined in. 95% of global banks are trading above a rising 200-day MA. Don't be afraid of a bull market. This name would be a great add to any portfolio. A dividend growth stock, and when there's inflation a rising stream of income is pretty attractive to offset the rising cost of living.

Has expanded into the southern US and UK; a great play as it expands in Latin America. Has a great base in Europe. Has a good asset management business. Will continue to do well. Deregulation in the US and Europe will help.

Spanish economy has been good, tourism up, EU interest rates have fallen. Moving forward, where is expansion going to come from? Big risk is what if Spanish economy starts to struggle? If you've done well, consider paring back. Once you double your $$, good time to sell half and then the rest is free.

Storm clouds aren't out there yet. But a stock that's moved this quickly will most likely go sideways or down a little bit. Nothing wrong with taking some profits off the table.

Has done really well, mostly on the expectation of relaxing of capital requirements for global banks in general. Well run. Spain is doing well relative to other European countries. At 10x PE, probably upside. Should do quite well over the long term, barring a recession.

Has liked financials for 3 years. Over last 18 months, has been very focused on international companies. 

Largest bank outside the US. As good as any bank in the world, yet trades at just under 10x PE (compared to MS at 17x). Great exposure through South America and Europe. Very strong digital platform, good capital markets and  commercial banking businesses. Growing consumer base. He's been buying pretty steadily over last 8-9 months.

Buy under $9. Pays a fine yield. One of his favrouite European banks.