1) Stress Test Announcement ECB
2) Bank distress in China on the back of higher than expected write offs (Greece is seen as an emerging market and NBG is a bank)
3) Article about high book value valuation in Seeking Alpha
1) Stress test will actually help NBG because NBG will be validated by the ECB
2) Banks in China are finally facing up to reality and this has nothing to do with NBG
3) Book Valuation is not realistic because of the many factors that influence bookvalue.
Greece will remain on the path of recovery and NBG is a leveraged play on the Greek economy, with Turkey as a bonus.
My price target is 24, but in between sickening volatility.
good probability that you are right, the momentum is up, not down. the rest is volatility.
So it's likely that NBG will pass the stress test with their Tier 1 Capital. So that begs the question that if they do, how high will NBG go? Low double digits?
I agree, what people don't realize yet is that between Greenslime, the Beard and Yellen.....Yellen will be by far the worst. So better to put some dollars in insane risk propositions such as this volatility beast.
the calls are insanely cheap in terms of the implied volatility. It's a great deal. If you want to finance them sell puts at strike 4.5 because puts are far more expensive than the calls. good luck
Seeking Alpha comes with a book value of 2.1 for NBG, whereas Morningstar quotes a price to book of 0.1.
That is an enormous difference......any thoughts on who is right and what the correct ratio might be?
you are talking delta (direction of the stock) I am only saying that the calls are mis priced versus the call. You can even make money from this if you are neutral.
well if that happens all longs here with more than 20 000 shares would become a millionaires ..... and deserved
Can anyone comment as to buying NBG versus buying the prefs? There is no more dividend on the prefs, so the only advantage seems the subordination..
Anyone here owns prefs?
at least the guy disclosed that he's short himself. the book value looks expensive...the author has a point there.
why not just sell the puts with strike 4.50? You may as well get paid while you wait.