Greek Equity Idea For the Brave

Greece has been attracting some famous value investors, including Seth Klarman, Paul Singer, and Dan Loeb. Unfortunately, many investors are still scared to invest in Greek equities, as the macro picture remains uncertain. However, valuations have gotten so low that we believe the market has over-reacted.

Based on CAPE , Greek stocks are cheaper than any other country at any time in recorded history. It does not make sense to us (as we have argued before) that a country like Egypt should trade at a much higher valuation than Greece.

For the less brave there is always GREK, which is up 100 percent since we recommended it in June 2012. However, some individual larger names, which have little coverage seem to be highly attractive even assuming the maco situation deteriorates further.

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