$7.15

-0.12 (-1.65%)

7/3/2008 1:03 PM

Sovereign Bancorp, Inc. (SOV)

CAPS Rating:

Holding company for Sovereign Bank, which is engaged in attracting deposits from its network of community branches located mainly throughout the New England states and originating commercial, consumer and residential loans.

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What the Community Thinks

Total Players

100 Outperforms

67 Underperforms

All-Stars

20 Outperforms

37 Underperforms

Wall Street

3 Outperforms

3 Underperforms

Players bullish on SOV are also bullish on:

Players bearish on SOV are also bearish on:

Ticker Tags

Pennsylvania (16), Philadelphia (6), Mid Cap (670), Savings & Loans (182), S&P 500 (482), Loans (101)
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Sovereign Bancorp, Inc. At A Glance

Current Price:	$7.15
Last Trade Time:	7/3/2008 1:03 PM
Open:	$0.00
Previous Close:	$7.27
Daily Range:	$7.05 - $7.60
52-Week Range:	$6.48 - $22.35
Volume:	5,351,036
Market Cap:	$4.81B
P/E Ratio:	53.26
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Stock Trends

SOV VS S&P 500 (SPY)

News & Discussion Boards

Other News Headlines for SOV

S&P 500 Leaders & Laggards: MBI, HBAN
6/20/2008 5:57:00 PM - AP
Premarket roundup: American Water Works, Petrohawk
6/2/2008 9:34:00 AM - AP
Ahead of the Bell: Sovereign Bancorp upgraded
6/2/2008 8:38:00 AM - AP
Sovereign Bancorp director buys shares
5/30/2008 2:29:00 PM - AP

More Headlines...

Top Bull Pitch

Recs

1 Sovereign Bancorp, Inc. (SOV)

Avatar Sqwii (< 20) Submitted: 6/03/08 2:48 PM

WOW ! Look at this insider buying !?!?!?!

05/30/08   WHITWORTH RALPH V   Purchased   3.18 Mil   $8.81   28.03 Mil
05/27/08   WHITWORTH RALPH V   Purchased   1.35 Mil   $8.62   11.67 Mil
05/23/08   WHITWORTH RALPH V   Purchased   4.71 Mil   $8.34   39.29 Mil
05/16/08   EHLERMAN P MICHAEL   Purchased   15,000   $...More

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Top Bear Pitch

Recs

5 Sovereign Bancorp, Inc. (SOV)

Avatar NetscribeBanking (96.27) Submitted: 2/26/07 7:15 AM

Sovereign Bancorp has its origins as a thrift institution but through a series of acquisition it has become more of a regional bank with a expertise in retail lending. Of late there is a strategic shift away from wholesale revenues with more emphasis on core commercial and consumer business to impro...More

Replies: 1 | Reply | Permalink

Sovereign Bancorp has its origins as a thrift institution but through a series of acquisition it has become more of a regional bank with a expertise in retail lending. Of late there is a strategic shift away from wholesale revenues with more emphasis on core commercial and consumer business to improve the quality of earnings on a sustained basis.

Though the performance for the recent quarter has not been satisfactory with net loss of $126 million and a deteriorating credit quality, it is entering the year 2007 with no acquisition or integration pending. It has a significant proportion of 27% as income from fee based sources and the accomplishment of massive balance sheet restructuring comes as a positive for the future performance, offsetting the current cost.

Net interest margins for the year 2006 declined 42 basis points to 2.75% mainly impacted by inverted yield curve as well as adverse mix of liabilities. Low cost sources of funding have been hard to come. Endorsing the same the average deposits declining by $645 million to $52.8 billion distributed between demand accounts with 13%, core accounts with 57% and the remaining 30% accounted by certificate of deposits.

A huge chunk of its loan portfolio, about 67% are in the real estate that are highly concentrated in the East Coast which have rumors of bubble or cooling down that would result in higher charge-off. The loss in mortgage banking has resulted in a shift of emphasis towards multi family loan business in 2007.

Corporate governance has taken a beating with the acquisition of Independence Community Bank Corp whereby it had to sell 19.8% of itself to Banco Santander Central Hispano to finance the same. The deal was structured in such a way to avoid shareholder vote it had to give up 3 of the 12 seats on board. As a result of this early indication of Sovereign Bancorp being taken over by Banco Santander Central Hispano looks visible.

However the future depends on its ability to rebuild its capital ratios with mounting debt it carries and realign its cost structure to bring it near to that of its peers. Moreover the fortunes of the bank are greatly tied to the economic conditions of interest rates, spending and consumer confidence, which is not good in the recent times and is on a down turn.

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Recs 0 (SOV) Eekare (23.87) Submitted: 6/24/08 4:26 PM : Start Price: $8.44 SOV Score: -11.17 Possible great deal at this price ($8.39). Numbers seem to be a bit better than other financials so if this stock will bounce when the financials bounces back up, this will bounce big in comparison. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (SOV) simultaneouslee (65.16) Submitted: 6/24/08 10:13 AM : Start Price: $9.29 SOV Score: 13.37 I used to bank with Sovereign - note my saying "used to" - and I switched because they aren't a very customer-friendly bank. Their business section seems vamped up enough to sustain them, and I'm sure will help them last for quite a while. However, I could go for long periods of time without touching my money in just my basic checking and savings accounts, and the balance would still dwindle and wither away because of all the miscellaneous and hidden fees they would charge. They also had a frustratingly long holding period before any cashed checks would clear, and even had the provision that wire transfers (which, when I was a college student, I needed to rely on from my parents occasionally to pay for urgent expenses) would still have to sit in the account for 24 hours before it cleared. Until Sovereign Bank really steps up their service and makes the individual customer the main focus of their business, I'm giving Sovereign Bank a thumbs down. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (SOV) EnochRoot (81.72) Submitted: 6/18/08 11:15 AM : Start Price: $8.45 SOV Score: -9.37 Fourth time around at this, man these financials are a tough bunch. I had reviously been testing the BKX index constituents, but since I already have an active position under testing, I looked to other banking indexes to see if a similar test can be performed today. This is the 11th day in 2008 the trigger has been tripped on the BKX, but only the second time for the KRE index, which contains a more diversified list of constituents and who, as a group, haven't seen their capital ratios affected quite as dramatically (as consequerntly have not undergone quite as severe a shellacking necessitating capital raises as the bigger BKX names.) Now the decline been so bad in the regional bank group that the KRX Index is now 24% under its 200-day moving average. Unfortunately, the index itself does not have a long enough history to test how prior period reactions to this level of a selloff, but the BKX index does. with regard to the BKX, that's an extraordinarily large spread that has been seen only five other times in its history - 10/7/98, 7/23/02, 10/7/02, 1/6/08, and 3/10/08. All were within a day of a major low and a month later the index was higher by +33%, +25%, 28%, 11%, and 7% respectively. So now I am using CAPS to track the KRX constituents over the next month in addition to my previously placed BKX bets, to see if this historical technical pattern will hold for the regional banks as it has so far for the major banks. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (SOV) stronzolo (< 20) Submitted: 6/16/08 8:51 AM : Start Price: $8.83 SOV Score: -11.70 the banks will come around Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (SOV) suhsido1 (97.81) Submitted: 6/15/08 12:59 PM : Start Price: $8.83 SOV Score: 11.70 Bearish on financials. 1 star. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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