4 Cheap Greek Stocks to Bet On

Finally, don't look at these stocks as you would core holdings. With core stock holdings, we will focus on earnings, sales and other fundamental data points. These Greek stocks are caught up in the media frenzy over Greece and Europe, yet each one is still fundamentally sound. Just as they were dragged down by the macro concerns in Europe, they will recover once those concerns abate. If these stocks work, you will be handsomely rewarded.

I am expecting that despite all of the intrigue and infighting within the eurozone, Greece will be rescued. The reputation of the entire EU and the euro currency is at stake. Countries such as France and Germany, which have the most to lose due to their economic exposure to all of Europe, will rescue Greece just as the U.S. came to Argentina's rescue nearly two decades ago.

With that in mind, here are four cheap speculative Greek stocks to buy in preparation for a bailout and turnaround in that country.

National Bank of Greece

National Bank of Greece (NBG) is the largest and oldest commercial banking institution in Greece. The company has a presence throughout Southern Europe and the Mediterranean. Think of the National Bank of Greece as a combined Citibank (C), JPMorgan (JMP), Wells Fargo (WFC) and Bank of America (BAC) for that nation. The bank also works closely with the debt-saddled government of Greece.

There is no way that this bank will be allowed to go under. The stock price is off more than two-thirds from its closing price at the end of 2010, yet it still has a market capitalization of over $2 billion. When I looked at the balance sheet, I was amazed to see a rather liquid institution.

Of course, the risk for this bank is that it might have to write off or write down many assets. Should that happen, I assume that any large financial rescue plan in Greece would also include some relief of the bank's liabilities.

The downside for National Bank of Greece is 60 cents. The upside is 5 to 10 times as much.

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