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National Bank of Greece S.A. Message Board

  • shabamoon shabamoon May 20, 2013 12:41 PM Flag

    55 cents: that is $5.50 @ 1-10 RS.

    Bank thinks their shares is worth 55 cents a share that is why they are selling billions of ADDED shares at 1-10 RS price of 5.50 which is exactly 55 cents today and before the RS.
    Short NBG as it has way more down to go.

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    • Also note that as if a RS price of 55 cents was not enough they are ALSO DILUTING the number of shares to the tune of 2.27 billion shares post RS which translates to 27.7 billion shares.

      This stock is not even worth 55 cents but much less when you include the dilution.

      Sentiment: Strong Sell

      • 1 Reply to shabamoon
      • There is a great misunderstanding of the term "dilution"...dilution is not known until the money it was diluted by is SPENT. If they bring in $11b NEW dollars by selling new shares and achieve $22b worth of value added from that new money, it is NOT dilutive, it is accretive.
        The easiest route for NBG to go is to continue buying it liabilities (debt) at huge discount prices. Buying their own bonds back at 50 cents on the dollar is double for them EV wise. The key for NBG is positive cash flow, and buying cheap debt back.
        Watch the numbers...if you have $10 in mortgages and $10 in loans against them and $1 in equity...if your net worth is $1. If you buy back $2 of those loans for $1 your net worth goes to $2. Very powerful stuff.

    • jodiebritt May 20, 2013 12:47 PM Flag

      No - the bank announced several months ago they would sell shares at 50% of the 50 day MA. That's exactly what they did. Only 12% (max) of the 2.2 billion shares are going to public. Rest go to HFSF and backstop the 54 month warrants (also at a $0.55 strike) which get delivered to the 12%....
      this is easy money....