National Bank of Greece, Earnings Lost in Reverse Split (NBG)
National Bank of Greece SA (NYSE: NBG) currently looks and acts like a different stock or ADR. The reason is because of its reverse stock split, at 1-for-5, which just took effect this week. Now shares are up around $2.48,…
National Bank of Greece SA (NYSE: NBG) currently looks and acts like a different stock or ADR. The reason is because of its reverse stock split, at 1-for-5, which just took effect this week. Now shares are up around $2.48, and the adjusted 52-week trading range is $2.15 to $11.85.
NBG has now reported a net loss for its third quarter , due in part to higher provisions against losses and bad debt. Greece’s economic turmoil played a large part as well. NBG also will need to raise capital before a coming write-down of the Greek debt.
This is becoming a ghost stock and the split-adjustment may just make for less trading in the stock. A $2.50 or so price is not exactly expensive for many of the low-priced and penny stock traders, but reverse splits often remove much of the trading volume regardless of the price. This means that there are now only about 20% as many shares outstanding.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
