The Eurozone Blasts the Greeks with Cash… Stocks Launch!
Over the past two days, the leading Greek bank, The National Bank of Greece (NYSE: NBG) has jumped 17%.
It moved on Friday as rumors hit the markets about a Euro/IMF bailout of Greece… Today — or rather last night — the stock moved up another $0.45 cents to $4.07.
The European government offered below market interest rates around five percent to bail out a country that was running debt levels above 12% of GDP. The Eurozone will offer as much as 30 billion euros in three-year loans.
Bloomberg quoted former IMF economist Stephen Jen as saying, "This is more than a bazooka. They have gone nuclear on the issue of Greece. In the short run, the market is short Greek assets, so we’ll get a rally in those."
Two weeks ago, I recommended the largest Greek bank in my trading service Crisis & Opportunity. It seeks to find extreme value in crisis situations and profit as those situations are resolved and the stocks are revalued upward as a result.
The National Bank of Greece is a clear example of this type of investing. And the run is just getting started.
In the United States, bailed-out banks went on a bullish rampage:
Bank of America (NYSE: BAC) went from $3 at the bottom to $17.93 today…
Wells Fargo went from $8 to $31.20 today…
Citigroup (NYSE: C), with the worst management of the lot, climbed from $1 to $4.29!
NBG has a current P/E ratio of 1.89; pays a 0.29 cent dividend; has a 44% profit margin and an EPS of $2.24.
It is still priced for going out of business… But this company will rock and roll before that happens.
Join me for the NBG ramp-up… and in the meantime, click here to read more about the biggest boom market you’ve never heard of…
Christian DeHaemer
Crisis & Opportunity
