Don't Discount Europe
Unicredit bank is NOT Joseph A. Bank (JOS). You don't want to get a two-for-one sale from a financial. You want one from a clothing store. Yet, that's exactly what you got with this rights offering that drove Unicredit's stock down to the March 2009 level, the worst month I can ever recall for banks around the world.
The fact is that there were buyers at this 43% rights offering discount. So, I guess we can say it was a success. But it also says that the prices people are paying for bank stocks in Europe with lots of leverage and lots of sovereign debt is about 43% too high, even after the declines this group has seen....400 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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