Monday, November 21, 2011
Investing in KOOR
Yesterday I had some spare coins and bought KOOR shares on TASE. KOOR is a holding company with large investment in Credit Suisse. Two years ago they sold some of it with a profit of 1 billion US$ that was paid out as dividend. Since then, CS lost 50% of its worth and KOOR is technically in red. Recently, KOOR sold Machteshim to the Chinese and after paying back the interests due on the CS speculation (which is done on credit), they are buying more CS stock. Since technically all European banks are broke (their holdings of sovereign debt are worthless), it is a bold move. It presumes that Angela Merkel and her Prussian schoolmasters will impose discipline on Southern Europeans, teach them to work and heal their finances. Pic.: The main banking hall of Credit Suisse (Zurich) in the eighteen sixties.