wrong ; the dilution has already been baked into the price ; this has dropped from $10 to $0.89 in over a few months because of the dilution fear ; and by the way ( BTW) NBG owns 80% stake in Turkey alone ; the upward potential is huge and this is exactly what my alogrthyme is predicting ; how do you spell algorithm anyways ? algorithm ; only mistake I made was the surprise Cyprus situation which came out of nowhere ; I am readjusting my algorithm to take into account Cyprus and the next Slovenia
The dilution is NOT priced into the current share price. It can NOT be. The dilution of the shares will be based off of 50 day moving average. The lower the price of shares towards the end of April, the more it will be diluted. I do believe that this will be a buy, but not till after dilution.
Per HFSF terms
(1) Greek banks must issue common shares to achieve a core Tier 1 capital ratio of 6%.
(2) They must also issue contingent convertible bonds (CoCos) to increase the Tier 1 capital ratio by 3%, from 6% to 9%.
(3) Common shares will be offered at lower of
(3a) at least a 50% discount of the 50-day moving average [MA] preceding the announcement of a bank's capital raising and
(3b) the last traded price preceding the announcement of a bank's capital raising.
Folks, Ricknagra is right. NBG is oversold and undervalued. Price/Sales 1.99, PEG ratio 0.06, over $16 per share in cash, and assets in Turkey that are generating cash flow. Don't be fooled into selling (or not buying) at this price. Bashers and shorts are desperate to have you believe their propaganda, and are trying to scare you into thinking share price could drop sharply. I believe it might drop slightly, which if it does, is a signal to buy more shares. Stay long and strong. Good luck to all.