Tuesday, 4 January 2011

Banco de Santader or the belief in the future economic growth of South America


At the current price of USD 10.66, Banco de Santander seems an interesting investment if you believe that South American economies are likely to grow at a good rate.

The yield is more than 4% and the earnings per share in 2010 might fall at around USD 1.30. For the year 2011, some analysts forecast earnings per share around USD 1.50. Are these forecasts too optimistic?

Despite the negative views of those who believe that a hike in interest rates will hurt Banco de Santander's profitability, I consider this company attractive, if only because its operations are well spread across many countries and because of its strong presence in South America, a region for which I see a promising future.

[Text: http://johnvespasian.blogspot.com]

[Image by Rennett Stowe under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]

Banco de Santader or the belief in the future economic growth of South America


At the current price of USD 10.66, Banco de Santander seems an interesting investment if you believe that South American economies are likely to grow at a good rate.

The yield is more than 4% and the earnings per share in 2010 might fall at around USD 1.30. For the year 2011, some analysts forecast earnings per share around USD 1.50. Are these forecasts too optimistic?

Despite the negative views of those who believe that a hike in interest rates will hurt Banco de Santander's profitability, I consider this company attractive, if only because its operations are well spread across many countries and because of its strong presence in South America, a region for which I see a promising future.

[Text: http://johnvespasian.blogspot.com]

[Image by Rennett Stowe under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]