National Bank of Greece

This was taken from Bloomberg yesterday:


May 18 (Bloomberg) -- Greece, which today received the first installment of a European Union aid package, cut its budget deficit in the first four months of 2010 by 42 percent and expects to borrow in the financial markets as soon as circumstances allow, the country's finance minister said.


"The program has been designed to be able to stay away from financial markets through the end of 2011 and the first quarter of 2010.  We don't expect this to be the case, we want to come back to markets much sooner," Finance Minister George Papaconstantinou told reporters in Brussels after a meeting with European Union counterparts today. "When exactly will depend on the condition in the international markets."


It's been clear and will remain clear that the notion of Greece "failing" is just an attempt...and a successful attempt to drive values relating to the financial assets of the country down below their normal valuation levels.  In the coming year(s) we will see that Greece will repay its debt and those people that ignored the cries of the media will reap huge profits.


Here are some facts.


Greece currently owes somewhere between 30-45B Euros which is approximately $38-57B US dollars.  However, Greece is not so poor of a country.  They may be in a recession, but overall the country has been doing reasonably well economically:

Unfortunately, we know now that Greece has a public debt of $450B, which is 125% of their current GDP.  However, Greece is a member of the European Union which has an estimated overall GDP of about $16-17T...so Greece's entire public debt is essentially only 2.5% of the EU's GDP.  The bottom line is Greece will be successfully bailed out by the union they belong to and value investors will have great returns buying severely depressed stocks such as:


National Bank of Greece

Here are some key metrics I looked at:

Put your finger over the "Company Name"...or even white out the word Greece and you'll see a fundamentally undervalued security - low P/E and P/B, selling below BV/share and an outstanding 5 year EPS growth rate.

If you truly believe the media (who probably own shares of this company), then obviously stay away from it and laugh at me when it goes bankrupt...but if you see a great buying opportunity like I do pull the trigger because Hellenism is definitely back baby!

Let me know what you think!