Everyone I know is punting this share as the share!!! Is it because of its international links and the fundamentals of the company? Is it the Share to own or are the others out there with just as much if not more potential? If so any suggestions?
SBK is trading at a 10% premium to the other banks, but that is because it is generally regared as the best run bank in SA. I like their strategy of providing funding for commodity based companies and their international links (especially China). Investec may be worth a punt, but it carries greater risk. (Disclaimer: i do own SBK shares)
Good bank and management but remember that international operations are predominantly Investment Banking. Nigeria is a long term Retail Banking story and Russia and other markets are investment banking. So you have to ask yourself the question....in the short-medium term where to the banking risk reside??? SA operations pretty much like the other banks with the biggest Credit Card book and second biggest home loan book. They have been talking a positive story.."flat to positive earnings for 2009" .. but wait for 28th FEB AGM..they will be releasing a trading update. Current trading at a premium on P/BV to other banks so priced almost for perfection...any disappointment could see the price hammered.OMO