Greek Rebound as Bank Stocks Soar

Written By Christian DeHaemer

Posted April 12, 2010

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

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