How brave are you? Greece’s financial woes are front-page news, but some stalwart investors are taking the opportunity to bargain shop for Greek stocks. Their theory is that several of these stocks are paying an unfair penalty for their nation’s woes.
Consider Coca-Cola Hellenic Bottling Co. (NYSE: CCH). Only about 10% of its volume comes from Greece, according to financial writer James Altucher. But merely because of its name, it’s taken a hit. It is trading for around US$23 down from US$28 before the crisis began.
Another casualty is Hellenic Telecommunications Organization SA (NYSE:OTE). It pays an 8% dividend, trades for eight times earnings, and fetches US$6, down from just under US$10 before the turmoil struck. In addition, Deutsche Telecom owns 30% of the company’s common stock, which suggests that if things get tough, this phone company will have places to turn.
Freelance business journalist Ian McGugan blogs for the Financial Post.