This post was just published on ZYX Buy Change
SAN is one of the largest and cheapest banks in the world. We are bargain hunters. One of the reasons the bank is so cheap is because it is headquartered in Spain. A big portion of the bank’s profits come from outside of Spain but the market seems to ignore this fact. This represents an opportunity for astute investors. Before investing in this stock, please carefully study a prior post.
The link is pasted for your convenience.
OPPORTUNITY IN STD TO ADD OR INITIATE A NEW POSITION
Due to the risk in Europe, only 15% of the full core position size is being held. Now there is proof positive that the stock has changed from weak hands to strong hands. The bears on the stock have long said that S&P would downgrade the stock and the stock would tank. Yesterday S&P finally downgraded the bank and the stock went up. This shows that investors who were going to sell this stock have already done so.
This is a very long-term position.
The buy zone is $4.11 – $7.50. The target zone is $16. to $18.
There is more good news on Spain. Please see this mornings capsule: SPANISH AND ITALIAN BONDS SURGE, GOLD GOES UP
What To Do Now?
Those in the stock and are aggressive may add 10% on any dip close to $7.
Those in the stock and are conservative may want to add 10% on a deeper excursion in the buy zone.
Those not in the stock and are aggressive may start a 15% position near the top of the buy zone.
Those not in the stock and are conservative may start a 15% position on a deeper excursion in the buy zone, preferably closer to $6.25.
