National Bank of Greece ADR (fka NBGGY)

[MasterBlastr]

Everyone should have gotten their money back by now . . .

[Smilin_B]

The question remains, do YOUR shares have any value and how can you sell them?

[Tradernick5]

Yes Exactly Thanks for the update Mr.Fence - there will be a blood bath if they go ahead with the split, lawsuit etc...German investors are upset too.

[mrfence]

There are two more shareholder meetings this month followed by earnings call so I believe there will be a lot of announcements, news, and analysis to be seen afterwards. Obviously quorum was met regarding the split so it's going to happen with a majority of shareholders blessing. From what I read, shareholders will be the first to know when with notice to their accounts. I have not checked mine today but don't expect a date to be set until after or during the last shareholder meetings this month.

[Tradernick5]

The Bank has not officially announced and it may not happen - Shareholders are really upset.

[mrfence]

Effective Date: UNKNOWN.

Holders of the stock will receive notice.

KNOWN: $ETE~ will open @ $3.00 Euro on the ATHEX on the effective date

[Tradernick5]

Hi Chris - Where did this guy come from? LOL - did they announce a date as to the split? Thanks buddy.

[jdwintx]

hey Gomer let me know how that works out for you. Say hey to Gober and don't lose too much now you hear. LOL

[jdwintx]

Hows that workin for you gomer?

[Chriss777]

Hey Einstein? A delisted stock can still split. And before you belittle anyone, get your own facts straight. The ADR NBGGY had already left Nasdaq long ago, but it was just cancelled recently. However it still trades in Greece under ticker symbol ETE:GR. It also trades in America under NBGIF.

[jdwintx]

Do you understand what delisted means?? The stock can't split, that's spin someone is trying to put on you. Reason no clue. A delisted stock can't be traded, and can't split. It's toast.

[Tradernick5]

When is the Reverse Split day? has it been officially announced?

[mrfence]

I was thinking like you... Sell 1/2 in case it drops after split but it appears it's going to open post split 20% higher than it's trading now so I've change my mind to ride it out.

[Jovo]

@all: what are your plans?

Wait it out?
Sell and buy back when it drops?
Sell and keep away?

Combo of the above?

I am thinking to wait it out or sell half in hope to buy back at cheaper prices. Not sure yet.

[manhin00]

If they want to issue the bonds to increase the capital, not issue new equity or do the placement, we all are safe.

If they issue convertible bonds, the company no doubt will recovery quickly, but when it recovered, they use the C/B to change to equity, our share will diluted.

[manhin00]

I asked my equity agent

in my country R/S, we call Share Consolidation.

The worst case is:-

after R/S they will issue New Equity(Rights Issue) or do the Placement. both are dilute the existing share holder benefit.

As the Q1 Report, it must recover, but they want to kick all Small Shareholder out now. they can use the lower price to buy back all our stock. like delisting the NBGGY. when it recovered, BIG shareholder will take all beneifit.


Why the company want to do the R/S?
1. as above
2. the price is too low, it cannot meet the rule of the authoritiy.

Let's see what will they do.

[Tradernick5]

That's Terrible I just paid .04 cents a share to convert in March and now this crap - There goes all my shares....

[Chriss777]

I just saw that and was about to post it. So now we will see. If it opens at 3 Euros, I pray that it does not sink. I just read an article that said the European Central Bank decided that Greece was "not eligible" to benefit from the ECB's bond purchase after the bail out ends in August. Anyway, this is it.... Now we will really see what is what.

3 Euro's equals $3.49.

http://www.digitaljournal.com/news/world/no-extra-ecb-help-for-greece-after-bailout-ends-draghi/article/528037

[Jovo]

The meeting approved the 1-to-10 reverse split of the NBG stock that will change the nominal value of each share from 0.30 euros to 3 euros.

Src:http://www.ekathimerini.com/231173/article/ekathimerini/business/nbg-still-has-several-issues-open

[RickNagra]

Tomorrow could be quite interesting.

[Chriss777]

http://www.ekathimerini.com/230968/article/ekathimerini/business/greece-would-be-fine-with-two-banks

[Chriss777]

yeah you're welcome. It appears that they plan on diluting the current share holders further. A dilution and a reverse split. I imagine, like Hmny, they want to issues more shares to raise money, then do a reverse split to raise the stock price. It's not good news for current shareholders if that's the case.

https://www.streetinsider.com/SEC+Filings/Form+6-K+NATIONAL+BANK+OF+GREECE+For%3A+Jul+23/14423152.html

[Jovo]

Thanks for your answer Chris777.
I have time, I'll sit this out and keep my shares.

[Chriss777]

Well last year I emailed the Bank of Greece and asked them about doing a share buy back. I was told that it would not be possible because the bank is being subsidized via the bail out. So it would be illegal for the bank to use tax payer money in order to buy it's own shares.

More than likely they will do a reverse split. What happens from there is anyone's guess. The bank is improving and if the RS puts the share price high enough maybe more people will be willing to take a chance and buy it. The flip side is that it could RS and go higher but if economic conditions don't continue to improve for the country as a whole and the bank then the stock will just come right back down again.

I remember all those original people like KMBSOUTH use to swear up and down that there would be no reverse split. Now here we are facing one. The lesson: don't listen to people on the internet. They don't know anymore than you do.

If you believe in Greece and the bank, you could buy as many shares as you can afford now so that when they do RS you'll survive it. Or just wait and buy afterwards. That's basically the only two choices outside of getting out altogether

[Tradernick5]

So Chris what is your inference on the matter? RS? Buy Back I am totally confused? Thanks in advance - great article.

[Chriss777]

Why is an increase in capital stock on a company's balance sheet a bad sign for stockholders? By J.B. Maverick
Share
A:

An increase in the total of capital stock showing on a company's balance sheet is bad for investors, because it represents the issuance of additional stock shares, which dilute the ownership value of investors' existing shares. However, the increase in capital stock may, in the long run, benefit investors in the form of increased return on equity through capital gains, an increase in dividend payouts or both.

Capital stock is the total amount of stock, both common and preferred, that a company has the authorization to issue. This amount is usually initially stated in the company charter. However, the company commonly has the right to increase the amount of stock authorized for issuance through approval by its board of directors. Along with the right to buy back existing shares from stockholders, a company also has the right to issue more shares for sale.

Increases in the total capital stock negatively impact existing shareholders since they result in dilution. An increase in the total number of stock shares means that each existing share represents a smaller percentage of ownership. As the company's earnings are divided by the new, larger number of shares to determine the company's earnings per share (EPS), the company's EPS figure will drop.

However, increases in capital stock can ultimately be beneficial for investors. The increase in capital for the company raised by selling additional shares of stock can finance additional company growth. If the company invests the additional capital successfully, then the ultimate gains in stock price and dividend payouts realized by investors may be more than sufficient to compensate for the dilution of their shares.

It is a good sign if a company can issue a significant amount of additional stock without seeing a significant drop in share price .

Investors and analysts are wary if a company continually initiates additional stock share offerings, as this often indicates that the company is having difficulty maintaining financial solvency with current revenues and is in constant need of additional financing.

Read more: Why is an increase in capital stock on a company's balance sheet a bad sign for stockholders? | Investopedia https://www.investopedia.com/ask/answers/050415/why-increase-capital-stock-companys-balance-sheet-bad-sign-stockholders.asp#ixzz5M66f9Fj3
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[Jovo]

When reading my quote again it seems not only a RS but something with the "bank's special reserve".

What does this mean exactly, new shares, buy back?

//Edit:
Found a document about one of the previous RS:
https://www.google.be/url?sa=t&source=web&rct=j&url=http://www.athexgroup.gr/documents/10180/4210701/57_11356_2015_English_2.pdf/4225a936-3cbb-4eae-bf42-53463c38149f&ved=2ahUKEwiyspaipLXcAhVD3aQKHU0uBSYQFjADegQIBxAB&usg=AOvVaw04q6S5q31NZgJVbjENP6SJ

And a short explaination of "share capital increase":
https://www.brreg.no/business/limited-company/share-capital/share-capital-increase/

[Jovo]

It was actually a question.

But this was my way of thinking:
They say to increase the value of a share to €0.9 and it's worth about €0.3 today. (Roughly speaking of course..)

They made a statement like this in the past with a 1/10 split using similar wording:
https://www.nbg.gr/en/the-group/press-office/press-releases/reverse-split

But it's not completely clear to me so please correct me if I am wrong.

Kr
J

[Chriss777]

Jovo, I did not see in the press release what kind of split it is. Where did you see that it's a 1 for 4 reverse split?

[Tradernick5]

Is that the split? Ruling is on Thursday? Wow - that's not fair at all so its 1 for 4? all of our ETE Shares / 4 BAD NEWS.

[Jovo]

100 shares at €1
Or
25 shares at €4
still is the same sum.

I do understand that the multiplier goes down but if no one is interested in pennystock..

The question is if it has an impact on an uptrend and new investors?
At least the board of NBG seems to think this is positive for their position and they should know their market..

What do you guys think?

[Tradernick5]

Fudge - There goes all my shares. WTF...

[Chriss777]

Odds are they will vote to reverse split at the meeting.

[Chriss777]

Thank you for posting this.

[Jovo]

[Jovo]

[Jovo]

https://www.nbg.gr/english/the-group/press-office/press-releases/Pages/INVITATION-TO-THE-BANK’S-ANNUAL-GENERAL-MEETING-OF-SHAREHOLDERS.aspx

Quote:2. (i) Increase in the share capital by EUR 0.90, due to capitalization of an equal part of the Bank's special reserve of Article 4.4a of Codified Law 2190/1920, and concurrent (ii) increase in the nominal value of each common registered voting share of the Bank and reduction in the aggregate number of such shares by means of a reverse split. Amendment of Article 4 of the Banks Articles of Association. Granting of authorities.

So are we expecting a 1/4 RS?

Corporate presentation June/2018 seems slightly positive:
https://www.nbg.gr/english/the-group/investor-relations/financial-information/presentations/Documents/Presentations/NBG%20Corporate%20Presentation_June18.pdf

[mrfence]

If shareholders approve the proposal on the table they will RS. There are 3 meetings scheduled to achieve a vote quorum. The first meeting is 7/20/18.

[Chriss777]

I really don't know. They have 9 billion shares outstanding. I guess it's possible. The previous splits were 1 for 5 in 2011 and 1 for 10 in 2013. Then they did a 1 for 15 in 2015. I'm considering dumping my shares and using the tremendous loss as a tax right off. I'll admit, I don't know what to do. Despite the return to bond markets and the rating agency upgrades, the pressure has still been downward and I don't know why.

[Tradernick5]

Chris you may be right but Europe needs them back up it may take a good 2 years - do you think they will R/S anytime soon? I hope not because all my shares will be wiped out.

[Chriss777]

You know what Nick? Despite the small, gradual improvements happening in Greece, I'm beginning to think the National Bank of Greece is still not an Investible asset, or any Greek Bank for that matter. Many stories I've read over the year have indicated that the Greek economy will not begin to recover fully enough until the year 2060. That's how badly the economy is damaged.

Your grand kids may be the ones who benefit from your investment. Half the loans or 50% of the banks asses are Non nonperforming loans. Then all that bail out money Greece owes Germany still has to be paid back with interest at some point. Greece will have enormous amounts of debt for years and years to come.

[MasterBlastr]

Its not to dump shares and raise capital . . .