What an alien year 2020 was. I wish you and whoever you love to be healthy, and I hope for a return to normality in 2021. Outside Greece, stock prices have returned to the pre-pandemic levels, whereas in Greece we are close to reach them. Prices, especially for shorter periods, can be illusionary. What do you think? Are you a bad investor if your portfolio declined -40% until March? Are you a great investor if it doubled later on? Read More
This video will help you understand P/E, which is probably the most important valuation metric in stocks. Dimitrios Koutsoumpos gives an easy example (BT Group PLC), and highlights the essence of the formula.
In Athinon Avenue—where Athens Stock Exchange is located—, prices have gone up this year, bringing even the small and micro cap stocks higher. Thus, finding profit making and growth firms in low prices has become difficult now, despite intense research. Only very few, abandoned by investors and little known stocks, meet those criteria. Occasionally, this happens when the growth of such stocks lack the growth of their fundamental figures, as retail investors do not recheck and evaluate. Karatzis SA (KARTZ), seems to be one of them. Read More
People not keen on the greek stock market, namely most Greeks, and the Greek micro-investors who are mostly used to buy only banks, both think that the greek stock market has been totally destroyed. They probably ignore that a small group of greek companies which have turned their attention abroad, are growing and produce more and more earnings. They do global sales either by choice, or due to their nature. This is a fortunate fact for their employees, the greek economy, the society and state’s income. But unfortunately for value hunters, this “fishing ground” is getting better and better known among investors, so larger extroverted companies are no longer cheap. Now, undervalued and extorverted are only found in Small Caps. It is very interesting that Thrace Plastics (PLAT), which is somewhat larger -especially for the greek stock market standards-, has ratios that show undervaluation.
Two weeks ago, I was in Mytilineos (MYTIL) AGM (Annual General Meeting of Shareholders). That was not the first time for me being in an AGM, but this time I was there as a member of the board of directors of the Greek Shareholders’ Association (SED) and a program that it organizes. In cooperation with universities and the Athens Stock Exchange, SED has organized the observation of AGMs’ by students. In Mytilineos, once again, it was confirmed that AGMs consist a big shcool, as SED’s President, Mr. Egglezos is used to saying.
It is a fact that greek investors are less mature compared to global investors. Τhat is reflected to the Greek Stock Market, as expected. In Greece, irrational behavior and valuations are more often and more intensely experienced, as a result of loose connection between stock prices and fundamentals. A wrong conclusion after the above, is that value investing makes no sense in Greece. I will attempt not only to break this impression, but also try to reveal the truth, which is total different than the obvious.