Santander Bancorp (SBP)

Company

"Santander BanCorp is the financial holding company for Banco Santander Puerto Rico (Banco Santander). The Corporation's main subsidiary, Banco Santander, is a commercial bank that provides a wide range of financial products and services to a diverse customer base that includes small and medium-size businesses, large corporations and individuals.

The Bank also provides mortgage-banking services through its mortgage operation, named "Santander Mortage". Santander Bancorp through its wholly-owned subsidiary, Santander Securities Corporation (Santander Securities) offers securities brokerage services. Portfolio management services are offered by Santander Asset Management Corporation, a wholly owned subsidiary of Santander Securities. Through its other subsidiary, Santander Insurance Agency, the Corporation became the first financial holding company in Puerto Rico to have an entity licensed as an insurance agency by the Insurance Commissioner of Puerto Rico. Santander Financial Services, Inc. through, Island Finance, its recently acquired business unit, provides consumer loans and real estate-secured loans to customers through its 69 stores in Puerto Rico, as well as sales finance contracts through retail merchants. Santander BanCorp organizes its operations in four principal lines of business: commercial banking, consumer banking, securities brokerage and asset management." (company website)

sbp(3-1)
SBP 4-month chart
sbp(3-1)_1yr
SBP 1-year chart

Buy

Santander pulled off a huge earnings surprise in August, reporting profits of 26¢ per share when only 3¢ was expected. This give new impetus to the uptrend that began in July. Early this month the share price fell back to the 200-day moving average to test support at $7.92. This puts the price at the bottom of an upward channel.

  • Percentage price oscillator (PPO) — just a tad below the signal line, not unexpected after a correction
  • Volume — steady, rising in last two weeks

Based on technical analysis, MarketEdge calls SBP a "buy" in a "strong upward trend."

Sell

gain Bottom line
-2%

What a fine kettle of fish this is! When I set my stop-loss order for SBP, I out-smarted myself. Instead of making it an stop-limit order, I made it a trailing stop order. That was fine for the first part of today's session when SBP seemed to be in freefall. But then it recovered, which meant that the stop rose along with it — and when it fell again, the sell order executed.

It's not all bad. I lost only a small amount on the position, and the extreme volatility this morning unsettled my nerves about holding a financial stock.