Friday, June 18, 2010

Ole! Santander gets offensive

Banco Santander (STD) is pressing on despite volatility in Euro financials. Santander is bidding for a stake in Royal Bank of Scotland. Take that, Euro bank haters.

Shares of STD dipped below 10 recently on fears over the euro and Eurozone banks, but STD bounced strong off those lows. Maybe this move is strategic. Maybe their call for stress tests wasn't a bluff against German banks. Maybe STD can overcome unemployment issues within Spain's borders.

Maybe STD has already hit its low for the near and long term. Is there a better Euro bank stock? Maybe not.

Or maybe STD is wobbly and trying to sustain an offense to make up for a weak defense. It makes for great viewing. I'm not convinced I need to have a position of any size.

[Update 1:45 am: STD ranked #1 in leaked stress tests, according to Cotizalia. So it was no bluff, after all. Ole!]

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