National Bank Of Greece Reached My Price Target Of Zero - Now What?
| About: National Bank of Greece SA (NBG), Includes: ALBKY, BPIRF, EGFEY
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary
I have warned many times not to invest money in National Bank of Greece.
Final private placement offers for Greek bank shares indicate a substantial discount compared to the average weekly close.
In the case of National bank of Greece, investors will purchase shares at a 95% discount compared to the close of Tuesday.
As you all know Greek banks are in the middle of a capital raising effort in order to stay solvent. While I am disappointed that a good and bad bank scenario did not play out, nevertheless my thesis that all current shareholders of Greek banks will go to zero -- or close enough to zero -- played out.
Piraeus Bank (OTCPK:BPIRF) announced a reverse split of 100 to 1. This means that at current prices (Tuesday's close 0.036 euros), the stock would have opened at 3.6 euros if the reverse split was finished. According to the local Greek site bankingnews.gr -- that specializes in Greek bank news as the name suggests -- book-building bids are in the 0.30 euro range, post reverse split prices. Or in other words, at a discount of about 95% % to Tuesday's close.
