Trade-Ideas: National Bank Of Greece (NBG) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified National Bank of Greece ( NBG) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified National Bank of Greece as such a stock due to the following factors:

  • NBG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.9 million.
  • NBG has traded 24.0 million shares today.
  • NBG is up 5.7% today.
  • NBG was down 7.9% yesterday.

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More details on NBG:

National Bank of Greece S.A., together with its subsidiaries, provides diversified financial services primarily in Greece. The stock currently has a dividend yield of 2.4%.

The average volume for National Bank of Greece has been 3.4 million shares per day over the past 30 days. National Bank of Greece has a market cap of $501.7 million and is part of the financial sector and banking industry. Shares are up 128.5% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates National Bank of Greece as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$1,057.57 million or 196.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • NBG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 82.97%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, NATIONAL BANK OF GREECE underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • 46.96% is the gross profit margin for NATIONAL BANK OF GREECE which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 19.62% is above that of the industry average.
  • NATIONAL BANK OF GREECE reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, NATIONAL BANK OF GREECE continued to lose money by earning -$27.80 versus -$167.60 in the prior year. This year, the market expects an improvement in earnings (-$0.34 versus -$27.80).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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