Merck & Co., Inc. (MRK): This Stock Rocked, So What Just Happened to Mine?

Don’t bank on it
One of the biggest gainers on the day Wednesday was National Bank of Greece (ADR) (NYSE:NBG), which seems to be surviving on little more than sheer will — and the big backing of its government. Its attempt to acquire Eurobank fell apart over the weekend following the European Union, European Central Bank, and International Monetary Fund suddenly questioning the validity of allowing an ailing bank to grow larger than home country’s entire GDP. They worried that if it failed it would require a huge bailout they could ill afford, after which National said private capital suddenly dried up.

But on Wednesday its stock soared 19% after it said it would raise 1.9 billion euros via a convertible bond offering and 9.75 billion euros via a rights offering. While the government is propping up the country’s biggest banks by providing them with most of the money necessary to recapitalize, they’re still required to find private investors to contribute at least 10% of its new common equity. National Bank of Greece says it will be hard-pressed to achieve that level, so I don’t see much reason for investor euphoria at the moment.

Whoa, Nelly!
While trading in these volatile stocks can be exciting at times, and the thought of making a killing on moves of just a few pennies seems like a path to riches, you’re more likely to see wealth destruction following that road. In these troubled times it might be better to stick with larger, more stolid plays like Merck & Co., Inc. (NYSE:MRK) and Pfizer than chasing the dreams these other troubled names provide.

The article Merck’s Stock Rocked, but What Just Happened to Mine? originally appeared on Fool.com.

Fool contributor Rich Duprey owns shares of Apple, Cisco Systems (NASDAQ:CSCO), and Pfizer. The Motley Fool recommends Apple and Cisco Systems. The Motley Fool owns shares of Apple.

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