Thanks for all your feedback, regarding Bank stocks outlook. You said you added more to NBG lately. What do you think of the recent proposal by Germany and France regarding GGB?
I am still reading mixed opinion on what the haircut will be on GGB. 21% seems to be the common consensus, but I am hearing further haircut will be needed down the road? That sounds bad. Below is a link in regards to GGB. Do you have any info. on the fate of NBG regarding this rollover and so on?
keep your head and calm is times like this. Hold your bank assets tight. This period will be looked back 3-4 years from now as the greatest bank buying opportunity in the last 20 years.
Just 2 small reminder from the history of ING.
1)March2003. ING was on sale first for $16, later at $12, fell even below $10. ING Market cap was cca. $18-$20B, and they made $4B earnings. This is PE=5, clearly great buying opportunity. No matter. Nobody wanted ING shares, as if Holland was under water. And all banks looked like terrible investment.
After 3 years, in 2006, ING Market Cap was cca. $100B, their earnings was $7.7B. They almost doubled their earnings, while the price more than quadrupled. Everybody wanted ING. Those who hold their shares tight and sold here, got $40-$45 for them. Nice return for 3 years of holding.
2)1996. ING shares are on market for $13-$14. Nobody was interested. The volume was 1/1000 of what is today. ING's market cap was $9-$10B. They made $1.6B earnings. The PE=5-6, great buying opportunity.