For All Those Interested Or Invested In Greece

[indythinker85]

And yet, despite all of this negativity, and the stubbornly high rate of unemployment still plaguing the country, Greek shares have been slowly recovering. The Global X FTSE Greece 20 (GREK | F-61) is up more than 20 percent YTD, and if you’re a traditional value investor, that could prove to be just the beginning.

 

Based on our in-house data, the trailing priece-earnings ratio on GREK is just 1. In other words, you’re paying just $1 for every single dollar in earnings the 20 companies in GREK brought in over the past 12 months. And that figure is not some quirk of the companies in the fund or the selection process. The MSCI Greece Investable Markets index has a P/E of just 2.5. That’s significantly higher than GREK’s portfolio, but still drastically cheaper than any other single country currently covered by an ETF.

 

http://www.indexuniverse.com/sections/blog/20393-the-cheapest-etf-in-the-world.html?showall=&fullart=1&start=2

[matjone]

Yahoo has the PE for GREK at 8.  Morningstar has it around 9 something based on forward looking earnings.  Who's right?

[muscleman]

And yet, despite all of this negativity, and the stubbornly high rate of unemployment still plaguing the country, Greek shares have been slowly recovering. The Global X FTSE Greece 20 (GREK | F-61) is up more than 20 percent YTD, and if you’re a traditional value investor, that could prove to be just the beginning.

 

Based on our in-house data, the trailing priece-earnings ratio on GREK is just 1. In other words, you’re paying just $1 for every single dollar in earnings the 20 companies in GREK brought in over the past 12 months. And that figure is not some quirk of the companies in the fund or the selection process. The MSCI Greece Investable Markets index has a P/E of just 2.5. That’s significantly higher than GREK’s portfolio, but still drastically cheaper than any other single country currently covered by an ETF.

 

http://www.indexuniverse.com/sections/blog/20393-the-cheapest-etf-in-the-world.html?showall=&fullart=1&start=2

 

The data could be wrong. We need to look at individual companies inside this GREK.

GREK is trading at a premium to NAV, so I think it is better to directly buy the companies inside.

[no_free_lunch]

Definitely look at the individual companies.  I did a bit of work on this earlier this year and it didn't appear to me to be that promising.  The higher quality companies looked to have 15-20 PEs.  There has also been dilution in some companies.  I couldn't figure out where the 8-9 came from.

[indythinker85]

Hmmm.. Not sure either number looks off, even CAPE is higher.

[no_free_lunch]

I just read the original post.  A PE of 1?  I am not sure, I just checked the first few companies and they are nowhere near 1.  Is there some company with a 1 time payout that is skewing the numbers?

 

Just off the bat, look at coca cola HBC.  According to bloomberg it has a forward PE of 29.

 

http://www.bloomberg.com/quote/CCH:US

 

Next up, hellenic telecommunications.  PE of 9.9

 

http://www.bloomberg.com/quote/HTO:GA

 

Next, OPAP. PE of 9.6.

 

http://www.bloomberg.com/quote/OPAP:GA