Shares of Banco Popular (BPOP) are down 16% year-to-date.
A leading player in Puerto-Rico, Popular has been deeply affected by the real estate meltdown in that economy.Total commercial real estate loans stood at $10.67 billion or 232% of its capital. Nonperforming commercial real estate loans made up 26% of its capital. The bank has a Tier 1 Common Equity ratio of 11.58%. In May, the bank said it ended talks to sell a $500 million portfolio of troubled property loans, disappointing investors who were hoping that Popular would be able to offload non-performers. The bank has said it would seek new buyers. Michael Diana at Cantor said he did not view the development as material. "Indeed, it appears, based on the language in the announcement, that Popular could have consummated this sale, were it willing/desperate enough to accept a low-ball offer. By refusing to do so, Popular seems to be demonstrating confidence in the Puerto Rico economy, that is, confidence that it will be able to work out these loans at a value no less than the level where they are marked." Cantor has a hold rating on the stock. Five analysts rate the stock a buy or outperform, while two have a hold rating on the stock. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV