Yannis
Stournaras is out and Gikas Hardouvelis is in - via a Greek government
restructuring announced by Prime Minister Antonis Samaras recently.
Mr. Hardouvelis’ appointment comes at a time
the country is striving to get out of a depression which parallels that of the
Great Depression in the 1930s. And it is good news for investors in Greek equities,
as it promises continuity of the policies that have helped the country put its
public finances and return to debt markets in order.
That’s why we want to re-affirm our previous
recommendations:
1. Buy an
ETF that invests in the Athens Exchange, like ALPHA’s FTSE Athex 20, and NBGAM
Athex, bearing in mind that these funds may not be readily available to small
investors. A more convenient choice is Global X FTSE Greece 20 ETF (NYSE:GREK),
which mirrors the performance of the FTSE/Athex 20 Capped Index.
2. Buy
shares of Greek companies trading in US exchanges - larger companies with a
dominant position in the Greek and Balkan markets.
One of these companies is National Bank of
Greece (NYSE:NBG) - the country’s largest bank, with a strong presence in the Balkan
region, Turkey, and Egypt - though this is a choice for aggressive investors. Another
choice is Hellenic Telecom (OTC: HLTOY), a former government monopoly that
remains a conglomerate with diverse interests, from broadband to Greek and
Balkan. The problem is that the stock had a big run up, from less than $1
during the crisis to above $8 currently.
But there is another sector that holds a
better promise in my opinion - Greek shipping stocks. Greece continues to be a
leader in this sector. Moreover, the sector is poised to benefit from a rebound
in the global economy, as discussed in a previous piece.
Here I like DryShips (NASDAQ:DRYS) as a
short-term speculative play, as it is popular with the momentum crowd longing
for the nostalgic days when the stock was trading north of $100.
I also like Costamare CMRE +1.66% as a
long-term play - the company owns a luxury hotel resort in Southern Greece,
enjoys large operating margins, and pays a hefty dividend north of 6 percent.
A few words of caution: Greece still faces
several hurdles that may lead to early elections which could change the rules
of the game. Investors must be prepared for turbulence, which could in turn
re-ignite old fears. Hype should never be a substitute for due diligence.
(Πηγή:
forbes.com)