Societe Generale's Ongoing Stumbles And Struggles Explain The Value Gap

Savvy, attentive investors can find bargains in the market, but it is usually a good idea to stop and ask why a given stock appears undervalued, as not all cheap-looking stocks are bargains. France's Societe Generale (OTCPK:SCGLY) is a case in point. A turnaround story that just won't turn around, Societe Generale continues to produce "it's always something quarters" that leave the market and investors disappointed.

At this point, it is difficult to come up with compelling reasons to own Societe Generale beyond its low apparent valuation and the prospect that these ongoing struggles might prompt a more dramatic rethinking of the company's strategy. That said, the company's prominent position in France likely limits how much activist investors can accomplish, and likewise any M&A activity may be challenging if Societe Generale isn't in the driver's seat. While these shares do appear to have double-digit upside, the company has really done nothing to engender trust in its ability to meet even modest long-term growth expectations.

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Societe Generale's Ongoing Stumbles And Struggles Explain The Value Gap