Banco Santander Brazil (BSBR)
Banco Santander Brazil (BSBR): Big solid company, thriving home economy, cheap stock price, small dividend
By Paul Goodwin, Analyst and Editor of Cabot China & Emerging Markets Report
From Cabot Wealth Advisory, 1/28/10. Sign up for free Cabot Wealth Advisory e-newsletter
My stock tip for today is Banco Santander Brasil (BSBR), a subsidiary of Banco Santander that's based in Sao Paulo. Santander is a big operation, with a market cap of $21.5 billion. This Brazilian bank came public at 13 last October, and after a post-IPO droop, managed to push above 14 in December and early January. But since then, BSBR has been under heavy pressure, falling along with the global finance sector.
My stock recommendations usually follow the traditional Cabot growth disciplines, so it's unusual to shout out a stock that's just fallen back toward its lows this month. But I think it's okay to put a stock on a Watch List even if it's had a brick on its head for a few weeks.
Santander is a full-service bank with over 2,000 locations in southern and southeastern Brazil. It does commercial and wholesale banking as well as asset management and insurance. The company's Q3 earnings were up 100% on an 84% jump in revenues, with an after-tax profit margin of 12.0%—that's registering a multi-year high.
With a trailing P/E ratio of 19 and a forward P/E of 10, it's certainly cheap enough. Plus there's a hint in the chart that the stock might actually find support at 12.
Big solid company, thriving home economy, cheap stock price, small dividend ... that's enough to put an emerging market stock on my Watch List. And when it shows some signs of life ... well, we'll see.
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Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report
A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report the number-one-rated newsletter of 2006 with a 78.6% gain for the year, the number-one-rated newsletter of 2007 with a 74.1% return, and the top-performing investment adivsory for five years with a 17.9% annual return.
|Banco Santander (Brasil) S.A. (BSBR)
Rua Amador Bueno 474
Sao Paulo, SP 04752-000 Brazil
55 11 5538 6000
|Index Membership: N/A |
Industry: Foreign Regional Banks
Full Time Employees: N/A