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METKA: The only Greek stock at Forbes investment guide

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“METKA, the constructor of power plants has most of its payroll in Greece and gets most of its revenues from outside the country. That’s a good combination”. The above quote comes from a tribute at previous issue of Forbes magazine entitled “Investment guide strategies, Playing the Obama market”.

The reason for including METKA ( the only stock of Athens exchange), was an analysis published last February at Wall Street Journals “insider” version, “Grant’s Interest Rate Observer”,  concerning Greek crisis.  The analysis was about how to invest in crisis-torn Greece, seeking profitable, lightly leveraged exporters companies that would be standing no matter what happens.

According to the analysis:

* METKA is an internationally competitive engineering, procurement and construction business - EPC to the cognoscenti – profitable in each of the past 20 years, shows €2.27 in net cash per share fully 36% of the €6.22 share price (February 2012) . It generates the great bulk of its revenue outside Greece and  non-Greek customers account for more than 90% of its €1.9 billion under backlog.

* According to Grant’s analyst Evan Lorenz, it is clear that the brothers Mytilineos have done a bang-up job with Metka over the past 13 years. Metka’s third – quarter 2011 revenue came to €241.8 million, compared to full year 1999 revenue of  just €55.7 million. In 1999, Metka was primarily a subcontractor in Greek construction projects. Today, it’s the lead EPC contractor on international power projects. It’s no easy feat making such a transition. Power companies aren’t in the habit of taking flyers on interested vendors.
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