Definitely need some cohones to run the opposite direction from the anglo-saxons, and it is not for everyone.
However, I bought Unicredit when it was at 4.18 in 2008 and the anglo-saxons were running for the exits, today it simmmers just under 6 and has a clean sheet on stress tests plus positioned for market share increase.
I bought Piraeus week before last @ 1.065 when rumours on stress test suggested bad news and the Anglos were looking for the first boat out of Athens, but if you looked inside the box it didn't seem so bad, they had already recapitalised a lot and in fact the stress test failed them as of 12/2013 but since then they reinforced the balance sheet and are clean for 2014: now at 1.30.
The market flees from unknowns and often over-estimates potential damage. You have to try to distinguish emotion from substance and where it's oversold on emotion there are often excellent 6-18 month opportunity for gains.
Of course MPS will have to raise new capital and consequently dilute the share, but if the price over-discounts this... At the moment the share is suspended from dealing for excessive drop, doesn't get better than that.
Anyway, who better to run the opposite way from the Anglo-Saxons if not the Irish? It's in our dna.
I'm a little disappointed that this fella hasn't held some of those early gains, surely people can see this bank is well positioned for a prosperous furture, or is it just the people on this forum that think this?
Very interesting opportunity on MPS right now. Nota bene today down 18% @ 0.82. Oversold with respect to stress test results. Discounts Anglo-saxon fear and prejudice regarding Latin assets. Not for faint hearted though. DYOR.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.