Monday, March 26, 2012

AIG and AIA

Another stock that could be active on Tuesday is American International Group(AIG) after CEO Robert Benmosche said in an appearance on CNBC that he expects taxpayers to realize a profit of $5 billion to $10 billion on their bailout investment in the insurance giant.

The shares jumped nearly 3% on Monday to close at $29.06 amid the broad market rally, and it's gained roughly 22% year-to-date. Deutsche Bank lifted its price target on AIG to $40 from $35 on Monday, saying it expects the company to ramp up repurchase activity.

"We believe that AIG is likely to buy back far more of its own shares than the market price would indicate and we believe those share buybacks happen at a pace that is far faster than currently anticipated," said the firm, which has a buy rating on the stock. "We believe $15-20 billion (or even more) worth of buybacks over the next twelve months is achievable as the Treasury and AIG sell off the remaining non-core assets. We believe BVPS book value per share growth in excess of 30% is possible if shares continue to hover around their current price."

Thats y there should be strong flow in 1299.hk today. 

Thanks
Paul

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