This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – September 12, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American International Group Inc. ( AIG - Analyst Report ) , Deutsche Bank AG ( DB - Snapshot Report ) ,Goldman Sachs Group Inc. ( GS - Analyst Report ) ,JPMorgan Chase & Co. ( JPM - Analyst Report ) andCitigroup Inc. ( C - Analyst Report ) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
Treasury Puts $18B AIG Stock for Sale
FollowingAmerican International Group Inc.’s ( AIG - Analyst Report ) decision to buy back shares worth $5.0 billion in the next U.S. Treasury stock sale, the Treasury initiated the sale of $18.0 billion worth of stock in the company.
In its fifth round of stock sale, the Treasury intends to sell about 553.8 million shares for $18.0 billion, at $32.50 a share, which is well above the Treasury’s break-even of $28.73 per AIG share. On Monday, AIG closed at $33.30 a share at the New York Stock Exchange, reflecting another solid gain from the latest sale.
While AIG intends to repurchase 153.8 million shares for $5.0 billion, the remaining $13.0 billion worth of stock will be raised through open market operations. In addition to the $18.0 billion stock offering, the underwriters are granted a 30-day option to buy another 83.1 million shares for $2.7 billion.
In addition,Deutsche Bank AG ( DB - Snapshot Report ) ,Goldman Sachs Group Inc. ( GS - Analyst Report ) ,JPMorgan Chase & Co. ( JPM - Analyst Report ) andCitigroup Inc. ( C - Analyst Report ) have been appointed as the joint global managers for the stock offering.
The successful culmination of the latest stock sale is expected to bring down the Treasury’s stake in the company to a meager 21.5% from the prior 53.4%. If the over-allotment is executed completely, it can further contract Treasury’s ownership to 15.9%. AIG has successfully shrunk the Treasury’s ownership in it from 92% in January last year to 53.4% currently, which equates to about 871 billion shares totaling about $30 billion.
The latest stock sale was executed last month, wherein the Treasury vended $5.75 billion of shares of AIG for an average price of $30.50. Of this deal value, AIG bought back shares worth $2.0 billion, while $3.0 billion were raised from the open market and an additional $750 million were sold to the underwriters.
Including the latest repurchase, AIG will have bought back shares worth $13.0 billion thus far in 2012. Last week, the company also disclosed its plans to utilize $2.0 billion raised from the sale of a part stake in in its Asian wing – AIA Group Limited (AIA).
The sooner-than-expected wipe-off of the Treasury’s stake helps rebound investors’ confidence in the company. At this rate, a complete liberation is expected by early 2013. However, we believe that AIG is liable to be confronted by fresh regulatory challenges from the Federal Reserve, who is the chief regulator upon the complete dilution of the Treasury’s stake.
Thus, we remain on the periphery at the moment to analyze the managerial and financial developments at AIG going forward. Consequently, we maintain a long-term Neutral outlook on AIG with Zacks Rank #2, which implies a short-term Buy rating and indicates a slight upward pressure on the stock in the near term.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
Please login to Zacks.com or register to post a comment.