Monday, June 1, 2015

Seeking Alpha: UniCredit Needs Help To Be Better

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

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