$6.32
-0.05 (-0.78%)
National Bank of Greece (ADR) (NBG)
CAPS Rating:
The Company is involved in diversified financial services activities including retail and commercial banking, global investment management, investment banking, insurance, investment activities and securities trading.
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Why isn't this trading at $10ish? Rumors and speculation can hinder the prospects of genuine and decent investments. People are affraid of financials, of foreign markets and of the stock market in general. I am convinced that many of the next great fortunes will be amassed by holders of stock in solid financial companies. Fear has been so rampant that buy points I never dreamed of before 2008 abound. When the market catches up with this, some shareholders will be well rewarded. Others will realize losses. Get to know your companies behind your stocks. This one looks like a winner for the long haul to me right now. But as with all of the areas of fear I mentioned above, I am watching.
I have a question and do not know where else to ask it: I read in Motley Fool that NBG did a 2 for 9 shares "rights issue "in July. I am an NBG shareholder (bought about three months ago) but did not get any information about this, was there a choice I had to make regarding this?
Have I missed something?
Thanks in advance! :-)
Daniel
There is no inclusion of ADR holders in the rights issue. You could not participate, yet you are diluted, owning 22.22222% less of a company who, in my opinion, compensate more than fully by having raised its Tangible Common Equity by 1.25 billions Euros, being now very much stronger even if it was already strong. The added value of the flexibility to acquire bargains, expand loan book selectively and grow beyond Greece surpasses the 22.2222% dilution in my opinion. The real winners are Greeks, those Greeks Geeks could buy those shares at a discount, they must laugh now. Still we may laugh in 3-4 years when dividends are back and the stock multiplies itself many times. There is nothing that precludes this from happening, but we must allow for uncertainty in our dreams hehehe.