Regular readers of my work will know that I have a certain affection
for tangled, messed up, trainwreck-y stories, as I often find a lot of
value in stories that are too ugly, too complicated, or too
time-consuming to get a lot of attention from institutional investors.
I think that's an apt lead-in for UniCredit SpA (OTCPK:UNCFF),
as this large pan-European bank continues to work through a lot of the
lingering damage of the European banking sector meltdown. A year ago I didn't see all that much surplus value in the shares
and they have only appreciated about 6% since then (the local shares;
because of currency the ADRs are down closer to 20%).
Unfortunately, I
still don't see a lot of value unless and until the bank can drive its
ROE above 12% again - and despite its high-quality operations across
Central and Eastern Europe, that could take quite a bit longer to
achieve.
Read the full article here:
UniCredit Needs Help To Be Better
No comments:
Post a Comment