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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (48151)	5/29/2012 11:01:52 PM
From: Spekulatius	Respond to of 78749

re BNP - I think that industrials in Europe (LEY.PA just being one example) are a better risk reward.Within European financials, I own AV too and I believe it (and other insurers) will survive any financial market calamity better than banks. AV trades at a large discount to book, they have booted their management (via vote on pay) and based on their current dividend (which may or may not be safe), the shares yield 10% (no witholding with GB shares is another advantage). I think BNP is one of the safer banks in Europe but given the current situation, that does not mean much. The problem that I see is that the last liquidity two injections in the trillion Euro range (total) were used to a large extend by PIG banks (Spain and Italy) to buy their own sovereign debt, while the French and German banks allegedly have been selling. That seemed to have stabilized the banks and the sovereign alike but now with both in doubt again, it just means that the risk is even greater that both the PIG banks and their debt go poof, and if that happens, owning everything close to it will not be a great idea. I am not saying that is will (in fact I am betting otherwise) but if it does, the financial system in Europe will go through a major dislocation. FWIW, some relevant information regarding AV. wallstcheatsheet.com